Good news for central government employees: DA raised by 2 per cent

Dearness allowance is paid to the government employees according to the inflationary trends in the country and to lessen its impact. (Photo: Reuters)

The Union Cabinet on Wednesday approved an increase of two per cent in the dearness allowance (DA) for the central government employees with retrospective effect from July.

Earlier, the employees were given a dearness allowance of 7 per cent which has now been hiked to 9 per cent. In March, the Union Cabinet had increased dearness allowance from 5 per cent to 7 per cent.

More than 48 lakh government employees and over 60 lakh pensioners will be benefitted from this increase in DA.

Dearness allowance is a cost of living adjustment allowance paid to government employees including pensioners. The DA is adjusted according to the inflationary trends in the country and to lessen its impact on employees.