Cabinet increases DA by 6% for Central government employees

Dearness allowance (DA) for central government employees has been hiked to 125 per cent of basic pay, up by 6 percentage points, with effect from January 1, 2016. The decision to release an additional installment of DA to central government employees and Dearness Relief (DR) to Pensioners from January 1, 2016, was taken by Union Cabinet on March 23. A



Finance Ministry release said, the DA will benefit 50 lakh central government employees and 58 lakh pensioners. Dearness Allowance is paid as a portion of basic pay of employees to neutralise the impact of inflation. Pensioners get Dearness Relief. The Centre revises DA twice a year on the basis of one year average of retail inflation for industrial workers as per a pre-determined formula. In September last year, DA was increased to 119 per cent from 113 per cent with effect from July 1, 2015.