7th Pay Commission: Cabinet approves DA hike for central govt employees from 17% to 28%

New Delhi: In a big relief for Central government employees, the Union Cabinet on Wednesday approved hike in Dearness Allowance (DA) from 17 per cent to 28 per cent.

Announcement to this effect is likely to be announced in Cabinet meet briefing.

The DA hike was put on hold last year, in wake of Coronavirus pandemic.

The move comes on the back of several media reports speculating that dearness allowance benefits under the Seventh Central Pay Commission (7th CPC) would be restored in July.

With restoration of DA, central government employees are likely to see a big jump in their salary, PF contribution and gratuity as well.

Although the hike has been approved by the cabinet, it is not yet clear if central government employees will get the hiked DA benefit from September.

At least 3 DA instalments were due before the hike was approved by the cabinet —2 from last year and 1 from this year. An 11% DA hike has been approved as part of the three pending instalments.