As a Diwali gift to Central government employees and pensioners, the government on Wednesday raised the dearness allowance (DA) by 5%. The decision was approved in a Union Cabinet meeting Chaired by Prime Minister Narendra Modi today.
Union minister Prakash Javadekar announced the government has hiked DA by 5% to 17 %, over the existing rate of 12% of the Basic pay/Pension, to compensate for price rise. The hike will be effective from 01.07.2019. This increase is as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
Approximately 49.93 lakh central government employees will get benefit of the kike in Dearness Allowance (DA) and around 65.26 lakh pensioners would also benefit from a hike in Dearness Relief.
Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from 1st January and 1st July.