Cabinet Approved 4 Percent DA hike from 1.1.2020

Good New for central government employees – 4% DA hike with effect from 1.1.2020 is approved by Union cabinet today

The Union Cabinet headed by Prime Minister Shri. Narendra Modi , in its meeting held today has approved to release an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.01.2020 representing an increase of 4% over the existing rate of 17% of the Basic pay/Pension to compensate for price rise.

As per this DA announcement made by Central government , With this 4% Dearness Allowance Hike, total DA at the rate of 21% has to be paid from 1st January 2020. The payment of additional DA for months of January and February 2020 will be paid as arrears.

Cabinet Approved 21% Dearness Relief for Central Government Pensioners from 1st January 2020

Ministry of Finance has issued Press release regarding cabinet Approval for dearness relief for central Government pensioners and family pensioners and Dearness Allowance for central government employees with effect from 1.1.2020.

The Official Press release of finance Ministry is given below

Ministry of Finance

Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 1.1.2020

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020. There will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.

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.

Calculate Expected DA from July 2020