Central Government Employees to get 12% DA w.e.f. January 2019

| February 19, 2019

The Cabinet on Tuesday gave its nod to hike the dearness allowance (DA) for government employees and pensioners by 3 per cent. The same would be effective from January 3, 2018.

The decision was taken at the Union Cabinet meeting in New Delhi on Tuesday.

Earlier in August 2018, the Union Cabinet approved additional two per cent hike in the Dearness Allowance (DA) and Dearness Relief (DR), a move that had benefited approximately 1.1 crore central government employees and pensioners.

The impact on the exchequer on account of both the DA and DR would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19 (8 months from July, 2018 to February, 2019). The hike will be effected from July 1, 2018, the government press release had earlier read.

It may be recalled that in March 2018, the Union Cabinet had increased DA for government employees and pensioners to seven per cent from five per cent, with effect from 1 January 2018. The DA hike was in accordance with a formula based on the recommendations of the 7th Pay Commission for central government employees.

In another Cabinet decision today, the government approved revised cost estimate for setting up of India Post Payments Bank from Rs 800 crore to Rs 1,435 crore.

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