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.
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