Bonanza for government employees as Cabinet approves 10% hike in DA

NEW DELHI: Ahead of the festival season, Union cabinet on Thursday approved 10 percentage point hike in Dearness Allowance (DA) for central government employees and pensioners considering the high rate of inflation in the past six months.

DA now will be 45 per cent of the basic pay.

The decision aims to extend relief to around 50 lakh employees and 38 lakh pensioners from the soaring prices as the inflation rate currently was over 15%.

Official sources said the 10% increase will be released with effect from July 1 this year. The central staff already get 35% of their basic pay as DA. The proposed increase is in accordance with the formula devised by the Sixth Pay Commission to compensate for price rise.