Cabinet approves 4% increase in DA from January 2020 for Central Government Employees and Pensioners. Dearness Allowance for Central Government Employees and Pensioners is revised twice in a year based on All India Consumer Price Index
Union Cabinet gave approval for increase in Dearness Allowance for Central Government Employees including Railway Employees, Civilian Defence Employees and Defense Personnel to the extent of 4% with effect from January 2020. Including this increase, DA from January 2020 will be paid at 21% of Basic pay.
Similarly, all Central Government Pensioners, Railway Pensioners, Civilian Defence Pensioners and Ex-Servicemen would be eligible for Dearness Relief of 21% with effect from January 2020.
As per Government Press Release, the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,510.04 crore per annum and Rs.14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). It will benefit about 48.34 lakh Central Government employees and 65.26 lakh pensioners.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
Source : Press Information Bureau