Dearness Allowance (DA) to central government employees and Dearness Relief to pensioners has been increased from 9% to 12% with effect from January 1, 2019. This move will benefit 48.41 lakh central government employees and 62.03 lakh pensioners. The combined impact on the exchequer on account of both DA and DR would be Rs 9,168.12 crore per annum and Rs 10,696.14 crore in 2019-20 (for a period of 14 months from January 2019 to February 2020). Previously, the Cabinet had increased dearness allowance in March 2018, from 5% to 7% in accordance with the recommendations of the 7th Central Pay Commission (CPC).