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  Business   Cabinet approves 2 per cent hike in DA for central govt employees

Cabinet approves 2 per cent hike in DA for central govt employees

AGE CORRESPONDENT WITH AGENCY INPUTS
Published : Oct 27, 2016, 4:44 pm IST
Updated : Oct 27, 2016, 4:44 pm IST

The government had, earlier this year, hiked the dearness allowance by 6 per cent to 125 per cent of the basic pay.

Union Finance Minister Arun Jaitley (Photo: PTI)
 Union Finance Minister Arun Jaitley (Photo: PTI)

The government had, earlier this year, hiked the dearness allowance by 6 per cent to 125 per cent of the basic pay.

New Delhi: The Union Cabinet, on Thursday, approved a two per cent hike in the dearness allowance for central government employees and pensioners ahead of Diwali.

According to reports, the hike would be effective from July 1 2017.

Dearness allowance and dearness relief is provided to employees and pensioners to neutralise the impact of price rise on their earnings.

Earlier this year the government hiked Dearness Allowance by 6 per cent to 125 per cent of the basic pay. The DA was later merged into the basic pay following implementation of 7th Pay Commission award.

The central government employee unions had earlier pressed for the DA to be increased by 3 per cent and not 2 per cent which is being considered by the centre.