3% DA hike for Central government employees

This is the second hike in DA for Central government staff this year


Ahead of Diwali, the Government has given a three per cent hike in dearness allowance (DA) to Central government employees and pensioners. Earlier, last week, HRKatha had reported that the Government is considering giving a further hike in the DA.

The decision to hike the DA was approved by the union cabinet. This is the second hike in DA for Central government staff this year. In the month of July, the Government had given an 11 per cent DA hike, increasing it from the earlier 17 per cent to 28 per cent. Now with another hike, DA will further go up to 31 per cent.

This increment in the DA will benefit more than 48 lakh in-service Central government employees and more than 67 lakh retired employees who receive pensions.

In the year 2020, the Government had to put a halt to the DA and dearness relief (DR) fund in order to conserve funds during the financial pressure brought on by the pandemic. However, effective from July this year, the DA and DR funds were again reinstated for the employees.

It is further reported that the enhanced DA hike will be paid out along with the salary for the month of October.

Apart from the Central government, the state governments of Bihar and Odisha have also given a DA hike to their employees this year.

The latest DA increment will cost the Central government Rs 9,488 crore annually.

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