Central Government employees gets 6% hike in dearness allowance (DA)

Central Government employees and pensioners will get a mid year bonanza with the Union Cabinet approving a six per cent hike in dearness allowance (DA) to compensate for the rising prices.

The move, which comes just ahead of the elections to five state assemblies, would benefit over 50 lakh employees in addition to 38 lakh pensioners. The decision to hike DA was taken by the Union Cabinet at its meeting in on Tuesday.

Sources said that the new DA, which would come into effect from January 1, would increase the DA benefits from the present 45 per cent to 51 per cent of the basic pay.

The relief comes as retail prices are ruling high on over nine per cent inflation. The combined impact of the hike will be Rs. 5,715.90 crore per annum.