Published On: Wed, Aug 29th, 2018

Centre hikes Dearness Allowance 2 per cent

New Delhi: The Centre today increased dearness allowance (DA) and dearness relief by 2 per cent to 9 per cent, benefiting 30 lakh central government employees and 50 lakh pensioners.

Finance Minister Arun Jaitley

This decision was taken at the Union Cabinet meeting chaired by Prime Minister Narendra Modi here.

“Release of additional installment of DA is an increase of 2 per cent over the existing rate of 7 per cent of the basic pay/pension, to compensate for price rise,” according to an official statement.

The new rate will be applicable from July 1.

Earlier, the central government employees were given a DA of 7 per cent which has now been hiked to 9 per cent. In March, the Union Cabinet had increased dearness allowance from 5 per cent to 7 per cent.

Dearness allowance is a cost of living adjustment allowance paid to government employees including pensioners. The DA is adjusted according to the inflationary trends in the country and to lessen its impact on employees.

Read Also: Union Cabinet likely to approve 2% DA hike on Wednesday


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