Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

 

Press Information Bureau
Government of India
Cabinet

19-February-2019 21:22 IST

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to the release of an additional instalment of Dearness Allowance (DA) to Central Government employees, and Dearness Relief (DR) to pensioners w.e.f. 1.1.2019 representing an increase of 3% over the existing rate of 9% of the Basic Pay/Pension, to compensate for price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission (CPC). The combined impact on the exchequer on account of both DA and DR would be Rs. 9168.12 crore per annum and Rs. 10696.14 crore in the FY 2019-20 (for a period of 14 months from January 2019 to February, 2020). This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.

Central Government DA

Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.7.2018

Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.7.2018

DA from 01.07.2018 @ 9%

No. 1/2/2018-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 7th September, 2018.

OFFICE MEMORANDUM

Subject: Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.7.2018.

The undersigned is directed to refer to this Ministry's Office Memorandum No.1/1/2018-E-II (B) dated 15th March, 2018 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government, employees shall be enhanced from the existing rate of 7% to 9% of the basic pay with effect from 1st July, 2018.

2. The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

6. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

Sd/-
(Nirmala Dev)
Deputy Secretary to the Government of India

Source: https://doe.gov.in/sites/default/files/DA%20Eng.pdf