Increase in the dearness allowance of central employees by two percent

Increase in the dearness allowance of central employees by two percent

New Delhi: Today, the Modi government has announced good news for millions of central government employees and pensioners. At the central cabinet meeting chaired by Prime Minister Narendra Modi today, central government employees' allowance (DA) has been increased by two percent. A decision has been taken at the meeting of the Union Council of Ministers. The proposal was introduced in the Cabinet for dearness allowance. At present, the center employees are getting 7% dearness allowance, which is a 9% increase in dearness allowance.

DA increase by central government decision of granting 2% dearness allowance to central employees has been approved in the Cabinet and will be implemented with effect from 1 July, 018. There are more than 48 lakh central employees and 61 lakh pensioners across the country and additional benefit in the dearness allowance will be provided with retrospective effect on all these employees and pensioners.


DA increase from July 2018

Increase in dearness allowance will be done under the formula set in the seventh pay scale. By the end of June, the dearness allowance has been implemented by seven percent of the basic salary, and now with the increase of more than two percent, on July 1, 018, central employees and pensioners will get the benefit of 9 percent dearness allowance according to the salary.

Still, in some states government employees were not benefitted from the arrears of various allowances like HRA, as per the recommendation of seventh pay panchayat. However, the Puducherry Government has increased its HRA of staff of its 3,000 employees. Due to this, the Puducherry government will have an additional economic burden of Rs.6 crores per month. Employees living in Puducherry will get an additional benefit of 8% in HRA and employees living in Namah and Karachi.
After approval of the recommendations, the Tripura government has paved the way for the National Pension Scheme for its staff. Now, the payment of pension to the former employees will be paid flawlessly.

When employees in Bihar are in the process of going on strike, the state government has also constituted a three-member pay committee to look into their demands.