NEW DELHI: In what could bring cheers to 50 lakh central employees and 58 lakh pensioners ahead of Diwali, the Centre is all set to announce 2 per centdearness allowance to be effective from July 1, 2016.
“The proposal to provide 2 per cent dearness allowance and dearness relief to central government employees and pensioners respectively, is listed on agenda of the Union Cabinetmeeting scheduled for tomorrow,” a source said.
Dearness allowance and dearness relief is provided to employees and pensioners to neutralise the impact of price rise on their earnings.
Earlier this year the government hiked Dearness Allowance by 6 per cent to 125 per cent of the basic pay. The DA was later merged into the basic pay following implementation of 7th Pay Commission award.