As a Diwali gift to central government employees and pensioners, the Government of India has today announced the highest ever 5 per cent hike in dearness allowance (DA). The hiked rate of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners will be applicable retrospectively from July this year.

According to the Honble Minister for Information and Broadcasting Mr Prakash Javadekar, the government has increased the DA from 12 percent to 17 percent. “This is the highest ever 5 percentage points increase in DA in one go by the central government,” Information and Broadcasting Minister Prakash Javadekar added while briefing media after a Union Cabinet meeting today.

According to media reports, the increase will benefit around 50 lakh central government employees and 65 lakh pensioners from this announcement. The additional DA will cost the government exchequer around Rs 16,000 crore.


Jan-16 0
Jul-16 … 2%
Jan-17 … 4%
Jul-17 … 5%
Jan-18 … 7%
Jul-18 … 9%
Jan-19 … 12%