Union Cabinet has approved additional Dearness Allowance, DA of three percent over the existing rate of nine percent of the basic pay or pension to Central government employees and pensioners.
Briefing reporters after the Cabinet meeting, Union Finance Minister Arun Jaitley said, it will be effective from 1st January this year.
This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.
This increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
In an another decision, the Cabinet has approved the implementation of Pradhan Mantri Awaas Yojana - Gramin beyond March, 2019.
A total target for construction of 1.95 crore houses has been set under this second Phase till 2022.