DA/DR hiked by 5 pc points to 17 pc for central Govt employees, pensioners
STATE TIMES NEWS NEW DELHI: Union Minister Prakash Javadekar on Wednesday announced that the Centre has decided to provide compensation of Rs 5.5 lakh each to 5,300 displaced families from Pakistan Occupied Kashmir (PoK), who initially opted to move outside the State of Jammu and Kashmir but later on returned. These families were earlier left out in the rehabilitation package that was approved by the Cabinet on November 30, 2016. “It has been decided that 5300 displaced families (from PoK), who had settled in regions others than Jammu and Kashmir but later came to the state, will also be provided Rs 5.5 lakh each. This will provide justice to these displaced families,” he said Speaking at a press conference in Shastri Bhawan The Prime Minister had announced a reconstruction plan for Jammu and Kashmir on November 2016. His plan included a rehabilitation package for a one-time settlement of 36,384 displaced persons’ (DPs) families of PoK-1947 and Chhamb. Notably, during the partition of India in 1947, scores of families from the PoK migrated to Jammu and Kashmir. Not only that, even during the Indo-Pak Wars of 1965 and 1971, thousands of people were displaced from Chhamb Niabat area of Jammu and Kashmir. Apart from the relief for the displaced families from PoK, Prakash Javadekar also informed that the Union Cabinet has approved to release an additional instalment of Dearness Allowance to the Central government employees and Dearness Relief to pensioners representing an increase of 5 per cent over the existing rate of 12 per cent of the Basic pay/pension, to compensate for price rise. Bringing cheers to 50 lakh central government employees and 65 lakh pensioners ahead of Diwali, the Cabinet announced an increase of 5 percentage points to 17 per cent in dearness allowance and relief, envisaging an additional annual outgo of Rs 16,000 crore.
The Cabinet approved releasing an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2019 representing an increase of 5 percentage points over the existing rate of 12 per cent of the basic pay/pension, to compensate for price rise, an official statement said.
This increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
“This is the highest ever 5 percentage points increase in DA in one go by the central government,” Information and Broadcasting Minister Prakash Javadekar said while briefing media on the decisions taken by the Cabinet, adding this will bring cheers to the government employees on the eve of Diwali.
The Cabinet meeting was chaired by Prime Minister Narendra Modi.
Beginning January 2019, the government had raised the DA/DR to 12 per cent from 9 per cent earlier.
The government said the combined impact on the exchequer on account of both DA and DR would be Rs 15,909.35 crore per annum and Rs 10,606.20 crore in financial year 2019-20 (for a period of eight 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 DA is estimated at Rs 8,590.20 crore per year; and Rs 5,726.80 crore in the current financial year (from July 2019 to February 2020).
The additional financial implication on account of the DR to pensioners is estimated to be Rs 7,319.15 crore per annum and Rs 4,870 crore in the current fiscal.
DA/DR 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.
These are revised twice a year from January 1 and July 1.
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