Central government employees get 2% DA hike

NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, has decided to increase the Dearness Allowance (DA) for central government employees by 2%. The Dearness Relief (DR) for pensioners will also be increased by 2%. With this hike, both DA and DR will rise from the current 58% to 60% of the basic salary and pension.

The revised rates will come into effect from April 1. The decision was taken considering the rise in inflation. The move will put an additional burden of Rs 6,791.24 crore on the government annually. Around 50.46 lakh central government employees and 68.27 lakh pensioners will benefit from this increase. The hike is based on the recommendations of the 7th Central Pay Commission.