In a major development for the central government employees, Union Cabinet on Friday has approved a proposal of 4% hike in the Dearness Allowance (DA). This is seen as a relief considering the rise in inflation and increased prices of essential goods amid the current economic slowdown.
The decision to raise the DA was taken in meeting chaired by Prime Minister Narendra Modi.
Well, the DA which was due for the central government employees and pensioners will be paid this month.
The central government employees and pensioners are granted this allowance every year on July 1 and January 1and is paid in the month of March and September respectively.
The existing Dearness Allowance of the employees will be raised from 12% to 17% of the Basic Pay with effect from July 1, 2019.
The central government raises the dearness allowance of its employees on the basis of AICPI index and on the rise in inflation rates.
The last time the DA was raised was in the month of August, 2019 on the recommendation of the 7th Pay Commission. It recommends Rs 18,000 as minimum pay for the central government employees.