The Union Cabinet on Friday approved a hike of 4 percent on dearness allowance (DA) for central government employees. The DA has been increased from 17 percent to 21 percent and will be effective from 1 January 2020.
Union Minister Prakash Javadekar announced the decision at the cabinet briefing. He said that decision will benefit 48 lakh employees and 65 lakh pensioners and 1.13 crore families.
#Cabinet approves an increase of 4 % #DearnessAllowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020. This is over the existing rate of 17 percent of the Basic Pay/Pension.@PrakashJavdekar #CabinetDecision pic.twitter.com/cbVWvjnX7V— PIB India (@PIB_India) March 13, 2020
The hike will benefit current central government employees, pensioners and families that receive family pension from the central government.
Government employees receive DA as compensation for inflation.
Previously, the DA had been hiked in October 2019 by 5 percent.