<p>The Union Cabinet Friday approved the proposal to increase Dearness Allowance (DA) for central government employees and pensioners by 4%, with effect from January 1, 2020.</p>.<p>The increase of 4% in DA is over the existing rate of 17% of the basic pay, pensions.</p>.<p>The move, which will benefit 48.34 lakh central government employees and 65.26 lakh pensioners, is expected to cost the exchequer Rs 14,595 crore.</p>.<p>DA is paid to the central government employees each year with effect from January 1 and July 1. It is paid in March and September respectively. The allowance is paid to offset the impact of inflation.</p>.<p>“The increase in DA is done accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” an official statement said.</p>
<p>The Union Cabinet Friday approved the proposal to increase Dearness Allowance (DA) for central government employees and pensioners by 4%, with effect from January 1, 2020.</p>.<p>The increase of 4% in DA is over the existing rate of 17% of the basic pay, pensions.</p>.<p>The move, which will benefit 48.34 lakh central government employees and 65.26 lakh pensioners, is expected to cost the exchequer Rs 14,595 crore.</p>.<p>DA is paid to the central government employees each year with effect from January 1 and July 1. It is paid in March and September respectively. The allowance is paid to offset the impact of inflation.</p>.<p>“The increase in DA is done accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” an official statement said.</p>
