Finance Min To Implement Dearness Allowance Hike From July 1
Finance Ministry will be implementing the Cabinet's decision to hike Dearness Allowance for central government employees to 28 per cent from July 1.
The ministry issued an order on Tuesday based on the approval by the cabinet last week.
The Union Cabinet had approved an 11 percentage point hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners with effect from July 1, benefitting more than 48 lakh central government employees, and 65 lakh pensioners.
Henceforth, the new DA rate will be 28 per cent, up from 17 per cent.
In an office memorandum, the Department of Expenditure under the Finance Ministry said the DA payable to central government employees shall be enhanced from the existing rate of 17 per cent to 28 per cent of basic pay.
The increase subsumes the additional installments arising on January 1, 2020; July 1, 2020, and January 1, 2021.