2% increment in dearness allowance

New Delhi, March 16: The Union Government on Wednesday sanctioned the two percent hike in the dearness allowance for government employees. The hike in DA would be effective from January 1, 2017.

The decision was taken at the cabinet meeting on Wednesday. The DA has been increased to neutralize the impact of inflation on their earnings.



The average CPI-IW to be taken into account for raising DA is 4.95% from 1 January to 31 December 2017. Since the government has already hiked the dearness allowance by 2% in October last year from 1 July, 2016,

It will now raise it further by 2%. The dearness allowance is paid as a proportion of the basic pay of the central government employees.