Centre approves 4 percent hike in DA to 21 percent

The Cabinet Committee on Economic Affairs (CCEA) has approved a 4 percent hike in dearness allowance (DA) for central government employees. DA has been raised to 21 percent from 17 percent. The Cabinet also approved an increase in dearness relief (DR). About 48 lakh employees, 65 lakh pensioners and 1.13 crore families will benefit from the hike.

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The hikes in both DA and DR are effective from 1st January, 2020. The allowance is a cost of living adjustment paid to government employees, public sector employees and pensioners. It is calculated as a percentage of basic salary to mitigate the impact of inflation.