Home / News / India /  Finance Ministry issues order to implement 28% Dearness Allowance (DA) hike from 1 July

The Finance Ministry has issued an order to implement the Cabinet decision to hike Dearness Allowance (DA) for central government employees to 28 per cent from July 1.

Last week, the Union Cabinet had approved an 11 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners with effect from July 1, benefitting more than 48 lakh central government employees, and 65 lakh pensioners. With this, the new DA rate will be 28 per cent, up from 17 per cent.

DA hike calculation

At present, the government employees are getting a 17% DA. For example, if a government employee's basic salary is 18,000, the DA is 3,060. With 28%, the dearness allowance will be 5,040 in a month. This calculation will be applicable from July 1.

Dearness Allowance is a component of the salary that cushions against inflation and is revised twice a year - once in January and once in July.

In April last year, the Finance Ministry had put on hold an increment in dearness allowance (DA) till June 30, 2021, due to the COVID-19 pandemic. The rate of DA from January 1, 2020, to June 30, 2021, was 17 per cent.

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