Union Government approved 6% hike in DA for Central Government employees

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Union Government approved

Who: Dearness Allowance for Central Government employees
What: Hiked by 6 percent
When: 9 September 2015

Union Cabinet on 9 September 2015 approved 6 percent hike in Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) pensioners. The notification of DA and DR will be effective from 1 July 2015.

With this announcement the total DA will go up to 119 percent from 113 per cent. This increment will benefit about 50 lakh government employees and 56 lakh pensioners.

The decision to increase DA by six percentage points was taken at a meeting by the Union Cabinet which was chaired by the Prime Minister Narendra Modi. The increment was made in accordance to the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

As per the agreed formula, DA rate increase is an average of 12-month consumer price index-industrial workers from 1 July 2014 to 30 June 2015.

The decision will cost to the public exchequer around 11091.9 crore rupees in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016). DA will be of approximately 6655.14 crore rupees per annum and that of the DR would be 4436.76 crore rupees.