Dearness Allowance Hiked for Central Government Employees! Modi Cabinet approves 4% DA increase

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Dearness Allowance Hiked for Central Government Employees! Modi Cabinet approves 4% DA increase

March 14, 2020, 9:19 AM

Dearness Allowance Hiked for Central Government Employees: Good news for Central Government Employees! The Union Cabinet led by Prime Minister Narendra Modi today approved the proposal to increase the Dearness Allowance for Central Government Employees by 4 per cent in accordance with the accepted formula based on the 7th Pay Commission recommendations. Dearness Relief for Pensioners has also been increased by 4%. The increase in DA and DR for Central Government Employees and Pensions respectively will come into effect from January 1, 2020. “The Union Cabinet has approved four per cent hike in dearness allowance (DA) for central government employees,” Union Minister Prakash Javadekar told reporters.

The news of DA and DR hike comes days after the Government has told the Rajya Sabha that Dearness Allowance was due to Central Government Employees from January 1, 2020. The revision in DA and DR is over the existing rate of 17 per cent of the Basic Pay and Pension of Central Government Employees and Pensioners respectively, the Government said.

An official statement of the Government said: “The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020. There will be an increase of 4 per cent over the existing rate of 17 per cent of the Basic Pay/Pension, to compensate for price rise.”

The statement further said that the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,510.04 crore per annum and Rs.14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). The DA and DR hike will benefit about 48.34 lakh Central Government employees and 65.26 lakh pensioners respectively.

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

Source – Financial Express

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