Saturday, September 6, 2014

DA Increase to Central Government employees & pensioners with effect from 01.07.2014

Good News for central government employees. The  Cabinet chaired by the Prime Minister, Shri Narendra Modi, gave its approval for increasing Dearness Allowance (DA) of  Central Government employees and  pensioners by 7 percent.  The current DA will be 107 percent from the existing DA of 100 percent.  The increase will be applicable from 01.07.2014.

The Dearness Allowance is increased for  Government employees every 6 months to compensate for price rise.  The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The total salary of the Govt. employee will be increased based on the basic pay and DA.

Due to this increase, around 50 lacs Central Government Employees and 30 lacs Pensioners will be benefited. The  impact on the exchequer on account of Dearness Allowance would be approximately Rs. 7691 crore per annum and Rs.5127 crore respectively in the financial year 2014-2015 (i.e. for a period of eight months from July, 2014 to February, 2015).


Source: http://pib.nic.in/newsite/pmreleases.aspx?mincode=61

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