Dearness Allowance hiked for central government employees by 4%

The Union Cabinet on Friday approved a 4% increase in Dearness Allowance for employees and pensioners of the central government.

Dearness allowance, a relief based on the rise in inflation and increase in prices of essential commodities, was due for Central Government Employees and Pensioners with effect from January 1, 2020, which will be paid this month.  

The allowance is granted to employees and pensioners of the Central Government each year on July 1 and January 1 and paid in the month of March and September respectively.

The Centre raised the existing DA of Central Government Employees from 12 per cent to 17 per cent of the Basic pay with effect from July 1, 2019.

The government increases the dearness allowance as per the AICPI index. The dearness allowance is paid to the government employees based on the rise in inflation.

The government has no control over the market-driven forces which influences the prices of commodities, therefore, the dearness allowance is given to protect the employees from the rising rate of inflation.

The DA is calculated twice in a financial year in the months of January and July.