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Wednesday, 7 March 2018

2% Dearness Allowance Hike For Central Government Employees From January 1

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2% Dearness Allowance Hike For Central Government Employees From January 1

Dearness allowance for lakhs of central government employees and pensioners has been hiked by 2 per cent. The increase was approved by the Union Cabinet at its meeting chaired by Prime Minister Narendra Modi this evening.

 2% Dearness Allowance Hike For Central Government Employees From January 1

It will benefit 50 lakh government employees and 61 lakh pensioners of the central government and will come into effect from 1 January 2018.

COMMENTSDearness allowance and dearness relief are provided to employees and pensioners to neutralise the impact of inflation on their earnings.

The existing dearness allowance - paid as proportion of the basic pay of central government employees or pension - is 5%.

According to the government, the increase in dearness allowance is made in accordance with the formula based on the recommendations of the 7th Central Pay Commission.

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