Union Cabinet Decision- Announcement of 3 percent increase in DA

New Delhi|The Union Cabinet, during its meeting held on Wednesday, has given its approval to a 3 per cent increase in dearness allowance and dearness relief. After this increase, DA has increased from 50 percent to 53 percent of the basic salary.

Lakhs of government employees will benefit from this decision of the Central Government. Dearness allowance is calculated on the basis of All India Consumer Price Index. Revision takes place every 6 months regarding DA. Dearness relief is given to retired central government employees. Adjustment takes effect in January and July after the increase in DA.

Announcements regarding DA are made in March and September. The announcement of increase in DA in January goes till March. Similarly, the announcement of increase in DA in July goes till Diwali. The basic salary of an entry level government employee is expected to increase by Rs 540 on a monthly basis after a three percent DA increase.

This decision of the government will provide relief to about one crore central employees and pension holders. Employees are also expected to get arrears for July, August and September. The increase in DA was expected after the Union Cabinet meeting on 9 October. However, central employees and pension holders had to wait a little longer for this amendment.

In addition, Chhattisgarh Chief Minister Vishnu Dev Sai announced on Wednesday that dearness allowance (DA) for state government employees will be increased by 4% ahead of Diwali and the festive season. Which would make it 50% of the basic salary. This increase will come into effect from 1 October.