Centre hiked DA for Central Govt employees and pensioners to 28%

The Union Cabinet decided to hike the Dearness Allowance to Central Government employees and Dearness Relief to pensioners from the existing 17 percent of the Basic Pay and Pension to 28 percent.

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The DA and DR instalments are due for four periods namely January 1, 2020, July 1, 2020, January 1, 2021 and July 1, 2021.

The government froze all such hikes last year as coronavirus had dented its revenue. The DA hike for central government employees is likely to cost the government about ₹34,400 crore annually.

Last year, the Union Cabinet had approved a 4% increase in DA for government employees and pensioners to 21%. This was to be effective from January 1, 2021.