DA of central govt employees hiked by 3 percent
More than one crore central government employees and pensioners will benefit from it while the cost to exchequer is expected to be around of Rs 9,000 crore
The Union Cabinet has approved a 3 percent hike in DA (Dearness Allowance) for the central government employees and dearness relief to pensioners today.
This will be effective starting 1 January 2019. This increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.
The current rate of DA stands at 9 percent. In August 2018, the NDA government had approved enhancement of 2 percent in the Dearness Allowance for the central government employees, effective from July 1, 2018, over the rate of 7 percent of the basic pay or pension.
Before that in March 2018, the Cabinet had increased DA from 5 percent to 7 percent in accordance with the recommendations of the 7th Central Pay Commission.
Dearness allowance is a cost of living adjustment allowance paid to government employees and pensioners.