Election bonanza: Centre hikes DA by 3%

February 19: Central government employees has got an election bonanza. The Union Cabinet on Tuesday increased the dearness allowance (DA) by 3 % effective from January 1, 2019, a move which will benefit 1.1 crore central government employees and pensioners.

The current rate stands at 9 per cent. With this 3 percent hike, the DA for central government employees will now stand at 12 percent. This this increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.

Dearness allowance is a cost of living adjustment allowance paid to government employees and pensioners. It is a component of salary, and is counted as a fixed percentage of the person’s basic salary. It is adjusted according to the inflationary trends to lessen the impact of inflation on government employees.

India, Pakistan and Bangladesh are the only countries in the world where government employees are given such an allowance.