Government employees with get an additional dearness allowance (DA) of two percent over the existing seven percent as per the accepted formula based on recommendations of the 7th Pay Commission, Union Cabinet said on Wednesday.

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Cabinet said, "The combined impact on the exchequer on account of both Dearness Allowance (DA) and Dearness Relief (DR) would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19 (for a period of eight months from July, 2018 to February, 2019)."

The Union Cabinet meeting, chaired by the Prime Minister Narendra Modi approved to release an additional instalment of DA to Central Government employees and DR to pensioners with effect from July 1, 2018 representing an increase of two percent over the existing rate of seven percent of the basic pay/pension, to compensate for price rise.

First Published:Aug 29, 2018 1:39 PM IST