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Union Cabinet announces hike in Dearness allowance of Central government employees & Pensioners

Prakash Javedkar

In a major respite to boom the economic cycle, Union Cabinet has decided to increase the DA (Dearness Allowance) of the central government employees by 5 percent today. The decision was conveyed by Union Minister Prakash Javedkar.

The Union Cabinet has also taken the decision to increase the DA of pensioners by 5 percent hike. It will be effective from July this year.

Speaking to the media after the cabinet meeting, Prakash Javadekar said that the move is expected to benefit 50 lakh central government employees and 65 lakh pensioners. The announced decision of the government is estimated to cost expenditure of Rs. 16,000 crore.

The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year, while the additional financial implication on account of the Dearness Allowance to the pensioners is estimated to be Rs 7319.15 Crore per annum.

Dear Allowance is an allowance paid to the Union government employees and pensioners to adjust the cost of living and to protect their basic pay from erosion in the real value. Dear Allowance is revised twice a year.

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Saurabh Parmar

Digital Journalist (Specializing in Indian affairs & Contemporary Political development)

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