Union Cabinet approves 2% DA

Date : 27.10.2016

7th Pay Commission: Union Cabinet approves 2% DA hike for Central Govt employees, pensioners

Dearness Allowance hiked by 2 percent forcentral

governmentemployees, pensioners

The Cabinet on Thursday approved the 2 per cent hike in Dearness Allowance (DA) for Central Government employees and pensioners, effective from July 1, 2016. The proposal to hike the DA was granted during the Cabinet meeting today afternoon at the Prime Minister’s Office. 

Dearness allowance is provided to employees and pensioners to minimise the impact of price rise on their earnings. Earlier this year, the government hiked dearness allowance by 6% to 125 % of the basic pay. It was later merged into the basic pay, based on the recommendation of the 7th Pay Commission Panel.