Today in a good news to central government, increase of 2% DA comes as Diwali bonanza. The proposal to increase 2 % dearness allowance and dearness relief to central government employees and pensioners respectively, was decided after a Union Cabinet meeting, an official said.
Dearness allowance and dearness relief is given to employees and pensioners to neutralize the impact of price rise on their earnings.
Earlier this year the government hiked Dearness Allowance by 6 per cent to 125 per cent of the basic pay. The DA was later merged into the basic pay following implementation of 7th Pay Commission award. However, The central government employee unions had demanded the DA to be increased by 3 percent and not 2 percent.
