DA Allowances Hike: The Modi government has given a big gift to the central government employees before Diwali. The Union Cabinet today on Wednesday announced a 3% hike in Dearness Allowance (DA) for Central Government employees and pensioners. With this increase, the dearness allowance of lakhs of employees has increased from 42% to 45% of basic pay.

How much salary increase?
The basic salary of an entry-level government employee after a 3% increase in dearness allowance, which is Rs. 18,000, out of which every month Rs. 540 is expected to increase. This increase is expected to benefit more than 1 crore central government employees and pensioners. Central government employees are expected to receive arrears for July, August and September.

Change twice a year

Dearness allowance and dearness relief for employees and pensioners are generally increased by the central government twice a year in January and July. Which is announced in March and October.

What is Dearness Allowance (DA)?

Dearness Allowance (DA) is one percent of the basic pay of the employees. It helps in reducing the impact of inflation on their cost of living. This allowance is usually revised every six months to reflect fluctuations in daily living expenses. The Dearness Allowance (DA) is determined by the All India Consumer Price Index (AICPI), which is updated twice a year to track retail price fluctuations. Increase in DA leads to increase in cash salary of government employees.