Dearness Allowance hike by 6 % from 1.1.2016

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.1.2016

Press Information Bureau 
Government of India
Cabinet

 

                                                  Release of additional instalment of Dearness Allowance to 

Central Government employees and Dearness Relief to Pensioners due from 1.1.2016

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an 

additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness

 Relief (DR) to Pensioners w.e.f. 01.01.2016. This represents an increase of 6 percent over the 

existing rate of 119 percent of the Basic Pay/Pension, to compensate for price rise.

This will benefit about 50 lakh Government employees and 58 lakh pensioners.

The increase is in accordance with the accepted formula, which is based on the recommendations of 

the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both 

Dearness Allowance and Dearness Relief would be of Rs. 6796.50 crore per annum and Rs.7929.24 

crore respectively, in the financial year 2016-17 (for a period of 14 months from January, 2016 to

 February, 2017).                                    23-March-2016 16:29 IST  

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