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Good News for Central govt employees & pensioners, dearness allowance hiked by 3%

The Union Cabinet, headed by PM Modi on Wednesday cleared a hike of 3% in the dearness allowance (DA) for the Central government employees & pensioners.

New Delhi: Amid the surging fuel prices, here comes a good news for Central government employee.

The Union Cabinet, headed by PM Modi on Wednesday cleared a hike of 3% in the dearness allowance (DA) for the Central government employees & pensioners. With this approval in spike, the DA now stands raised from 31% to 34%.

The welcome decision on increase in DA is likely to benefit more than 50 lakh government employees and more than 60 lakh pensioners, even as rising fuel prices & inflation continue to put pressure on taxpayers’ pockets.

Dearness Allowance is a component of salary paid to government employees and pensioners. The DA is raised twice every year – January & July to cushion the impact of price rise & inflation.

The amount of DA however differs for different category of officers. Region wise also, it has variations as it takes into account urban & rural conditions in raising the allowance.

The last DA hike came in October 2021, when it was increased by 3%. That time, the DA for employees & pensioners were increased from 28% to 31%.