The government on Thursday hiked Dearness Allowance (DA) by 2 per cent for government employees based on the basic pay or pension, to compensate for price rise.

This move by the government will benefit around 50.68 lakh government employees and 54.24 lakh pensioners.

Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners will be effect from 1.07.2016.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, a PIB release said.

The combined impact of both Dearness Allowance and Dearness Relief would be Rs 5,622.10 crore per annum. For the Financial Year 2016-17 for the period of 8 months that is from July 2016 to February 2017, it will be Rs 3,748.06 crore.

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