Cabinet approves 4% hike in Dearness Allowance

at 6:41 pm

New Delhi (NVI): The Union Cabinet meeting chaired by Prime Minister Narendra Modi, has approved a 4 per cent hike in dearness allowance (DA) for central government employees, which are effective from January 1, 2020.

Union Minister Prakash Javadekar today said that an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners will be released.

The Dearness Allowance has been raised from 17 per cent of the Basic Pay/Pension to compensate for price rise to 21 per cent.

Javadekar noted that 48 lakh employees, 65 lakh pensioners and 1.13 crore families will benefit from the hike.

The Cabinet Committee has also approved an additional spend of Rs 14,595 crore on the hike in DA, Javadekar added.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.