D.A.

2 % MOGHVARI BHATHTHANA TAFAVAT BILO BABAT

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2% Dearness Allowance Hike Cleared For Central Government Employees From January 1

Dearness allowance for lakhs of central government employees and pensioners has been hiked by 2 per cent. The increase was approved by the Union Cabinet at its meeting chaired by Prime Minister Narendra Modi this evening.


It will benefit 50 lakh government employees and 61 lakh pensioners of the central government and will come into effect from 1 January 2018.

Dearness allowance and dearness relief are provided to employees and pensioners to neutralise the impact of inflation on their earnings.

The existing dearness allowance - paid as proportion of the basic pay of central government employees or pension - is 5%.

According to the government, the increase in dearness allowance is made in accordance with the formula based on the recommendations of the 7th Central Pay Commission.
n a move that is set to bring cheer to nearly 1 crore Central government employees and pensioners, the Cabinet has approved a proposal to hike the dearness allowance (DA) by 2 per cent.

The green signal was given by the cabinet was given in today's meeting. The hike in Dearness Allowance for Central government employees and pensioners was earlier expected during Diwali.

In September last year, the Modi government raised the dearness allowance for government employees from 4 per cent to 5 per cent. The revised DA rates were applicable from July 1, 2017.

The government provides Dearness Allowance to its employees and pensioners to mitigate the impact of inflation.

Central government employees have been demanding a hike in basic minimum pay from the existing Rs 18,000 per month. While there is ambiguity on whether the government will consider such a demand, the DA hike is set to give employees reasons to celebrate.

In June last year, the government cleared the Seventh Pay Commission's recommendations on revised allowance structure, with 34 modifications, for Central government employees and pensioners.

The Seventh Pay Commission examined 197 allowances and suggested doing away with 53 of them and subsuming another 37 with bigger ones.

(With inputs from Rahul Shrivastava)
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