Centre hikes dearness allowance 5 per cent
New Delhi: The Centre today increased dearness allowance (DA) and dearness relief by 5 per cent to 17 per cent, benefiting 30 lakh central government employees and 50 lakh pensioners.
Finance Minister Nirmala Sitharaman
This decision was taken at the Union Cabinet meeting chaired by Prime Minister Narendra Modi here.
“Release of additional installment of DA is an increase of 5 per cent over the existing rate of 12 per cent of the basic pay/pension, to compensate for price rise,” according to an official statement.
The new rate will be applicable from July 1.
The five per cent hike in DA is the biggest since the implementation of the 7th pay commission recommendations in 2016.
Union Minister Prakash Javadekar: Under leadership of Prime Minister Modi, several decision have been taken and good news for govt employees is that Dearness Allowance has been hiked by 5%. pic.twitter.com/P08ZnEcDIC
— ANI (@ANI) 9 October 2019
Earlier, the central government employees were given a DA of 12 per cent which has now been hiked to 17 per cent. In February, the Union Cabinet had increased dearness allowance from 9 per cent to 12 per cent.
Dearness allowance is a cost of living adjustment allowance paid to government employees including pensioners. The DA is adjusted according to the inflationary trends in the country and to lessen its impact on employees.