Dearness allowance hiked by 4% for central government employees

Since this will be effective from Jan 1, 2020, staff will be getting arrears for three months.

DA hiked by 4% for central govt employees; 1.13 cr families to benefit
Amid all the bad news with regards to the impact of coronavirus, the central government had some good news for government employees. The Union government announced a hike of four per cent in dearness allowance (DA). The DA has been hiked from 17 per cent to 21 per cent on March 13, 2020 . The decision will be effective from January 1, 2020.

The decision was announced by Union Minister Prakash Javadekar during a cabinet briefing. Javadekar said that this decision will be beneficial for 48 lakh employees and 65 lakh pensioners; this will benefit 1.13 crore families.

Since the decision will be effective from January 1, 2020, central staff will be getting arrears for three months.



The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, a Press Information Bureau press release stated.

Apart from central government employees, even central government pensioners and those receiving family pension from the central government will be benefited from this decision. Therefore, the decision will also hike pensions received.

Dearness allowance is usually received by government employees to compensate for rising inflation. The decision announced today will put more money in the hands of government employees and pensioners. The decision has come at a time when Indian economy is in bad shape.

Previously, DA was hiked by the Union Government in October 2019 by 5 per cent. Prior to this, the dearness allowance was at 12%. Dearness Allowance/Dearness Relief is paid to central government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from January 1 and July 1.
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