Published On: Tue, Oct 15th, 2019

Centre notifies 17 Per Cent Dearness Allowance

New Delhi: Centre today notified its decision to give dearness allowance (DA) to 17 per cent from existing 12 per cent from July 1, 2019, benefiting 30 lakh central government employees and 50 lakh pensioners.

Finance Minister Nirmala Sitharaman

The Finance Minister Nirmala Sitharaman moved the cabinet note on October 9 for approval of releasing of an additional installment of 5 per cent of dearness allowance to central government employees with effect from July 1, 2019.

“…the President is pleased to decide that Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 12% to 17% percent of basic pay w.e.f. 01.07.2019,” a finance ministry’s OM No.1/3/2019-E-II (B) dated 14th October, 2019 said.

The DA has been increased by 5 per cent over the existing rate of 12 per cent of the basic pay to compensate for price rise and it is in accordance with the accepted formula based on the recommendation of 7th pay commission.

The hike will cost the exchequer Rs 16,000 crore and will be effective from July, this year.

The hike in the DA is as per the agreed methodology of taking average of Consumer Price Index-Industrial Workers for the past 12 months.


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