DA hiked by 4% for central govt employees, Cabinet to announce on Wednesday

Dearness allowance is the component of one’s salary that is adjusted to compensate for rising inflation.

New Delhi, Sep 25 (TST): The Union government is all set to increase the Dearness Allowance or DA by 4 per cent for the central government employees on Wednesday, sources told The Sen Times. The government has however not made any official announcement regarding the probable date as yet.

The hike in Dearness Allowance will provide much-needed relief to thousands of beneficiaries amid rising fuel and oil prices and inflation.

The Union Cabinet headed by Prime Minister Narendra Modi is expected to announce Dearness Allowance and Dearness Relief hike for central government employees on September 28, the sources confirmed.

The revision of the dearness allowance rate for Central Government Employees is due this month. Several media reports have claimed that the DA hike announcement will be made by the Government before the end of the month. The current rate of DA provided to Central Government Employees is 34%. It is expected that the DA rate will be increased to 38% of basic pay.

To cope up with the rising inflation, the Centre will announce another 4 per cent hike in DA and DR for the central government employees and pensioners. Then, the dearness allowance will jump to 38 per cent of the basic salary. This decision will benefit over 50 lakh government employees and 65 lakh pensioners.

A rise in DA this month is suggested by the June All-India CPI-IW. Employees may also receive arrears for the months of July and August in addition to the increase in the Dearness allowance.

The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.