Government Hikes Dearness Allowance By 3%, To Benefit 1.1 Crore Employees, Pensioners

The Union cabinet increased the dearness allowance by 3 percent effective Jan. 1, 2019, a move which will benefit 1.1 crore central government employees and pensioners.

The cabinet has approved additional dearness allowance of 3 percent over the existing rate of 9 percent to government employees and dearness relief to pensioners from Jan. 1, 2019, Finance Minister Arun Jaitley told reporters after the cabinet meeting chaired by Prime Minister Narendra Modi.

The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.