Cabinet hikes DA of central government employees by 5 per cent effect from July 2019

Cabinet hikes DA of central government employees by 5 per cent effect from July 2019

7th Pay Commission Latest News Today 2019 - Cabinet Approves 5 percent DA Hike from July 2019

5% DA from July 2019 Declared

More than one crore of employees and pensioners are waiting for the announcement of hike in DA from July 2019.

Today the Centre has decided to increase 5 percent Dearness allowance for Central Government employees and Pensioners with effect from 1st July 2019. The second installment of 5 percent additional Dearness allowance is increased for Central Government employees and Pensioners with effect from July 2019. After enhancement of 5% the DA is increased from 12% to 17%.

Also check: Cabinet approves 5% additional DA/DR to Central Government employees due July, 2019 - PIB

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The hiked rate of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners will be applicable retrospectively from July this year

These are revised twice a year from January 1 and July 1.

DA Arrears

5% DA Arrears for three months from July to September 2019.

DA from January 2020

The 5% additional Dearness allowance for the period of 6 months from July to December 2019. After that the next episode of ‘DA from January 2020’ will start!

Check this 7th pay commission pay hike latest news

5% Additional DA approved to Central government employees from July 2019

 Ministry of Finance

5% Additional DA approved to Central government employees from July 2019

Posted On: 09 OCT 2019 2:40PM by PIB Delhi

The Union Cabinet Chaired by Prime Minister Narendra Modi today approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2019 representing an increase of 5% over the existing rate of 12% of the Basic pay/Pension, to compensate for price rise.  This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 15909.35 crore per annum and Rs. 10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020).  This will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners.

The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year; and Rs 5726.80 Crore in the current Financial Year of 2019-20 (for 8 months from July 2019 to February 2020).

The additional financial implication on account of the Dearness Relief to pensioners is estimated to be Rs 7319.15 Crore per annum and Rs 4870 Crore in the current FY.

Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from 1st January and 1st July.

Source: PIB

DA Announcement before Diwali – 5% Hike in DA for Central Government Employees before Diwali

DA Announcement before Diwali – 5% Hike in DA for Central Government Employees before Diwali

7th Pay Commission Latest News Today 2019 – 5% Hike in DA for Central Government employees and pensioners before Diwali

DA Announcement before Diwali

More than one crore Central Government employees and pensioners are looking for DA announcement from the month of September. The Central Government has not taken any decision on DA yet. We hope that the announcement of 5% increase in DA additionally from July 2019 will be declared before the grand festival of Diwali.

Also read: 7th CPC DA Hike will announce today for central government employees and pensioners

 

17% of 7th CPC Matrix Pay

At present, all Central government employees are getting 12% Dearness allowance of their matrix pay and if Govt declare 5% hike in DA, the total DA will become 17%. For example, if an employee gets Rs. 49000 matrix basic pay, he will get enhanced DA will be Rs. 8330 per month (Rs. 5880 + Rs. 2450 = Rs. 8330).

First Time 5% DA

After implementation of 7th Pay Commission, this is the first time 5% increase in DA

Also check: 5% DA increase from July 2019 confirmed for Central Government Employees. 12% becomes 17% due to high inflation

M/Y	Enhanced DA	DA %
Jul-16	2%	2%
Jan-17	2%	4%
Jul-17	1%	5%
Jan-18	2%	7%
Jul-18	2%	9%
Jan-19	3%	12%