New Delhi | Jagran Business Desk: Union Minister Anurag Thakur on Wednesday announced that the government has hiked the Dearness Allowance (DA) for Central Government employees and pensioners from 17% to 28%. It will be applicable from July 1, 2020. 

The decision was taken in the Union Cabinet meeting on Wednesday at Prime Minister Narendra Modi's official residence. It is the second meeting of the newly reshuffled Cabinet in less than a week. The Joint Council Machinery for Central Government Employees (JCM) headed by the Cabinet Secretary had already cleared the proposal for hiking DA and DR.

At present, the DA and DR installments are due for the months of January 1, 2020, July 1, 2020, January 1, 2021, and July 1, 2021. The central government employees get a dearness allowance of 17 per cent currently which has been effective since July, 2019.

Due to the COVID-19 pandemic, the government stalled the hike in dearness allowance last year. The finance ministry had announced that no arrears will be paid from January 1, 2020, to June 30, 2021. 

With a hike of 3 per cent in July and the pending hikes of the previous months, the DA for the central government employees has been increased to 28 per cent. This comes as a big relief to Central government employees amid the ongoing pandemic.

Dearness Allowance (DA) is the sum paid by the Central government to its employees and pensioners to cope up with the inflation in the country. It differs depending on the rate of inflation in a particular year and the location of the employee.

Posted By: Sugandha Jha