7th pay commission updates have been much in news from a long time. This time there is something concrete. 1 percent Dearness Allowance (DA) and Dearness Relief (DR) has been approved by the Union Cabinet, following the approval of the 7th Pay Commission. The release of additional 1 percent Dearness Relief to pensioners and 1 percent Dearness Allowance to Central Government employees have been approved by the Union Cabinet.
Additional 1 Per Cent DA and DR approved
As per reports, the Union Cabinet, chaired by the Prime Minister of India, has approved 1 per cent Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees as well as pensioners under 7th pay commission. The cabinet has given its approval for release of additional 1 percent Dearness Relief (DR) to pensioners and Dearness Allowance (DA) to Central Government employees. The additional 1 percent will be applicable from July 1, 2017.
Compensation – 7th Pay Commission
The release of the additional installment of DR and DA that has been approved by the Union Cabinet represents an increase of 1 percent. This approved 1 percent is over the existing rate of 4 percent of the Basic Pay and Pension. The move behind approving the 1 percent increase is aimed at compensating for price rise. The increase is based on the recommendations that were received by the bench of the 7th Pay Commission. This increase is in accordance with the accepted formula.
The increase is based on the recommendations that were received by the bench of the 7th Pay Commission. Furthermore, the increase is in accordance with the accepted formula.
Whose benefit is the 1 percent approved increase?
According to reports, the collective impact of the increase in allowance on the exchequer would be Rs.3068.26 crore per annum. The amount has been calculated on account of both DA (Dearness Allowance) and DR (Dearness Relief) taken as 1% under 7th Pay commission.
For the financial year 2017-18 the impact on the exchequer would be Rs.2045.50 crore. As the additional 1 percent is going to be applicable from July 1, 2017, the amount of Rs. 2045.50 crore has been calculated for a period of 8 months from July 2017 to February 2018. This 1 percent increase in the DA and DR under 7th Pay commission will benefit approximately 49.26 lakh Central Government employees besides benefitting 61.17 lakh pensioners in the country.
Source: One India
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