Cabinet approves 4% hike in DA, effective from 1 January

March 13: The Union Cabinet on Friday gave the nod for a 4% increase in dearness allowances (DA) for all government employees and pensioners. The central government employees will now be entitled to 21% DA instead of the earlier 17% with effect from 1 January, 2020.

Union Minister Prakash Javadekar told reporters in New Delhi that the move is likely to benefit 48 lakh employees and 65 lakh pensioners. The hike in dearness allowance will cost the government additional Rs 14,595 crore, he added.

Dearness Allowance is granted to employees of the central government each year with effect from January 1 and July 1 and is paid in the month of March and September respectively. It is calculated on the basis of a rise in inflation and increase in prices of essential commodities.