DA of central govt employees, pensioners hiked by 3%

DA of central govt employees, pensioners hiked by 3%

The move that will benefit over 48.41 lakh central government employees and 62.03 lakh pensioners.

The Union Cabinet on Tuesday approved a hike in dearness allowance (DA) of Central government employees and pensioners to 12% from the existing 9%, effective from January this year.

The move that will benefit over 48.41 lakh central government employees and 62.03 lakh pensioners will cost the exchequer Rs 9,186.12 crore in the current financial year ending March 31.

The decision was taken by the Union Cabinet chaired by Prime Minister Narendra Modi.

The increase is in accordance with an accepted formula based on the 7th Central Pay Commission’s recommendations, Finance Minister Arun Jaitley said briefing reporters after the cabinet meet.