Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated the 7th September 2018
Subject: Grant of Dearness Allowance to Central Government employees – Revised Rates Effective from 1.7.2018
The undersigned is directed to refer to this Ministry’s Office
Memorandum No.1/1/2018-E-IL (B) dated 15th March 2018 on the subject
mentioned above and to say that the President is pleased to decide that
the Dearness Allowance payable to Central Government employees shall be
enhanced from the existing rate of 7% to 9% of the basic pay with effect
from 1st July, 2018.
2. The term ‘basic pay’ in the revised pay structure means the pay drawn
in the prescribed Level in the Pay Matrix as per 7th CPC
recommendations accepted by the Government, but does not include any
other type of pay like special pay, etc.
Read also: Revised Pay Matrix Table for Central Government Employees
3. The Dearness Allowance will continue to be a distinct element of
remuneration and will not be treated as pay within the ambit of FR
4. The payment on account of Dearness Allowance involving fractions of
50 paise and above may be rounded to the next higher rupee and the
fractions of less than 50 paise may be ignored.
5. These orders shall also apply to the civilian employees paid from the
Defence Services Estimates and the expenditure will be chargeable to
the relevant head of the Defence Services Estimates. In respect of Armed
Forces personnel and Railway employees, separate orders will be issued
by the Ministry of Defence and Ministry of Railways, respectively.
6. In so far as the employees working in the Indian Audit and Accounts
Department are concerned, these orders are issued with the concurrence
of the Comptroller and Auditor General of India.
Deputy Secretary to the Government of India