Update: The Cabinet hiked 2 percent DA for central employees. The DA applicable from 1st January 2018.
New Delhi: According to sources, the Cabinet is set to give green signal to the DA hike in Wednesday’s meeting. The Centre is likely to hike Dearness Allowance (DA) by 2 percent, indicated various media reports. The proposed hike for employees would be put before the Union Cabinet for approval and as soon as the revised DA comes into effect, at least 50 lakh CG employees and over 55 lakh pensioners will benefit from the hike.
It may be noted that DA is given to staffers and pensioners to counter the effects of inflation on their earnings. The hike in Dearness Allowance for Central government employees and pensioners was earlier expected during Diwali.
In September last year, the Modi government raised the dearness allowance for government employees from 4 per cent to 5 per cent. The revised DA rates were applicable from July 1, 2017.The government provides Dearness Allowance to its employees and pensioners to mitigate the impact of inflation.
Central government employees have been demanding a hike in basic minimum pay from the existing Rs 18,000 per month. While there is ambiguity on whether the government will consider such a demand, the DA hike is set to give employees reasons to celebrate.