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

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 percent. 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, ”Union Minister Prakash Javadekar told reporters’. 

The government claims that 1.13 crore families will benefit from this. Now dearness allowance to central employees has increased from 17 percent to 21 percent.

The central government has given a big gift to the central employees. In a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi on Friday, it was decided to increase Dearness Allowance (DA) i.e. 4%. Union Minister Prakash Javadekar gave this information. Prakash Javadekar said that the increased allowance will be applicable from January 1.

This decision was expected since the General Budget. Almost a year after the Seventh Pay Commission came into force, the Central Government introduced a dearness allowance. Now, after increasing the dearness allowance by 4 percent, it is believed that the salary of Level-1 central employees will increase by Rs 720. Not only this, but employees will also get the benefit of additional traveling allowance in increased salary.

The last such decision was taken on 10 October 2019

Earlier on 10 October 2019, this relief was given to central employees. The Modi government had then announced an increase in the central government employees’ Dearness Allowance by five percent. After this decision, the dearness allowance was now increased from 12 to 17 percent. About 50 lakh central employees and pensioners benefitted from this decision of the central government.

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 percent to 17 percent of the Basic pay with effect from July 1, 2019.

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

Government also has no control over the market-driven forces which influence the prices of commodities, therefore, the DA (dearness allowance) is given to protect the employees from the rising rate of inflation.

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