Good News! Govt hikes Dearness allowance to 38% for Central employees

The Union Cabinet has increased Dearness allowance (DA) of the Central Government Employees by 4% taking it effectively at 38 per cent from 34 per cent.

New Delhi: Central Government increased dearness allowness to 38% from 34% on Wednesday. The step will be beneficial for over 50 lakh central government employees and 62 lakh pensioners all over India. 

The Indian government gives Dearness Allowance (DA) to the central government employees twice in a year or once every six months. Earlier, employees and pensioners put pressure to the government to increase dearness allowance which has been unpaid for 18 months by sending letters to the government.

Apart from DA hike, the Union Cabinet could also decide to extend the PM Garib Kalyan Anna Yojana for another 3 months till December. The cost to state exchequer will be around Rs 40,000. 

Letter demanding 18 months DA Arrear

On 18 August 2022, the Secretary (Staff Side) of the National Council, Shiv Gopal Mishra has sent a letter to the Cabinet Secretary and the President of the National Council. In the letter, a demand has been made for payment of arrears of dearness allowance and dearness relief for 1 January 2020, 1 July 2020 and 1 January 2021.

Shiv Gopal Mishra has also mentioned the Supreme Court's decision dated 08 February 2021 in a letter to the Cabinet Secretary. The Supreme Court had said in its decision that due to the economic crisis, the salary and pension of the employees can be stopped immediately, but it will have to be given back to the employees when the situation improves. This is the right of the employees. Payment should be made as per law.