7th Pay Commission: Govt clears additional 2% Dearness Allowance; read full details

Prime Minister Narendra Modi chaired Union Cabinet on Wednesday March 15, 2017 that approved the release of additional 2% Dearness Allowance (DA) to all central government employees under the 7th Pay Commission recommendations. 

Cabinet, in a statement said, "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. 01.01.2017. It has increased by 2% over the existing rate of 2% of the Basic Pay/Pension, to compensate for price rise."

It further said that the increase is as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. 

Government further said that the impact of this increase in DA and DR will be Rs 5,857.28 crore per year and Rs 6,833.50 crore in the financial year 2017-18. 

The move will benefit nearly 49 government employees and 55.51 lakh pensioners. 

However, the wait for increase in allowance continue as the Committee on Allowances led by Finance Secretary Ashok Lavasa is yet to submit its report to the Government. 

Minister of Finance (State) Arjun Ram Meghwal told the Parliament earlier this week that the Committee is yet to submit its report on DA and Transport Allowance (TA). 

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