Good news for Government employees- DA increased to 5%

The union cabinet meeting accompanied by PM Narendra Modi has finally decided to increase Dearness Allowance (DA) from 4% to 5% whereas Dearness Relief(DR) from 1% to 5%.This move will benefit about 49.26 lakh central government employees and 61.17 lakh pensioners,the cabinet said.The combined impact on the economy of both DA and DR would be Rs 3,068 crore PA and Rs 2,045 crore in the financial year 2017-18 for a period of 8 months from July 2017 to February 2018.
Different currencies in India
Courtesy- www.bankingschool.co.in

The Union cabinet said-
Release of additional installment of DA is an increase of 1 per cent over the existing rate of 4 per cent of the basic pay/pension, to compensate for price rise.

What is Dearness allowance?
The Dearness Allowance (DA) is a cost of living adjustment allowance paid to Government employees, Public sector employees and pensioners in India and some other countries. Dearness Allowance is calculated as a percentage of an Indian citizen's basic salary to mitigate the impact of inflation on people. Indian citizens may receive a basic salary or pension that is then supplemented by a housing or a dearness allowance, or both.

Source-Economic Times,Wikipedia
Good news for Government employees- DA increased to 5% Good news for Government employees- DA increased to 5%   Reviewed by Saurabh Jadhav on September 12, 2017 Rating: 5
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