Union Cabinet hikes 2% DA for central government employees

New Delhi: The Union Cabinet today hiked 2 percent dearness allowance (DA) for the central government employees with effect from July 1, 2018.

With increase of two percent DA, it was now hiked to 9 percent. This move will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners in India.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.6112.20 crore per annum and Rs.4074.80 crore in the financial year 2018-19 (for a period of 08 months from July, 2018 to February, 2019), said the government said in a release.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

In March, the Union Cabinet had increased the DA from 5% to 7% with effect from 1 January 2018.

DA is a cost of living adjustment allowance paid to the government employees and pensioners. It is calculated as per the inflationary trends in the country to mitigate its impact on the employees.