Published On: Wed, Jan 1st, 2020

Centre to hike DA by 4%

New Delhi: Central government is likely to approve a hike in dearness allowance (DA) by 4 per cent to 21 per cent from the existing 17 per cent, benefiting around 30 lakh Centre’s employees and its 50 lakh pensioners including dependents.

Finance Minister Nirmala Sitharaman

“The All India Consumer Price Index (AICPI) for the month of November has gone up to 328. The AICPI for July, August, September and October 2019 are 319, 320, 322 and 325 respectively,” an official said.

“DA will be less than four percent only if there is a decrease of 12 points in the December index. But such a huge reduction has not happened in the last 15 years. Hence, the four per cent DA raise has been confirmed with the release of November 2019 All India Consumer Price Index (AICPI),” he added.

The DA hike will be officially announced in the month of February 2020 to March 2020.

The DA hike is announced twice a year. The DA hike is announced on the basis of the inflation from July to December in the previous year and January to June in the same year.

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.


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