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Dearness allowance of central govt employees hiked by 2%

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New Delhi: In what could bring cheer on the faces of employees working under the central government, the Union Cabinet on Wednesday approved an increase of two per cent in their dearness allowance (DA).

Earlier, the employees were given a dearness allowance of 7 per cent which has now been hiked to 9 per cent. The hiked DA will be effective retrospective from July, sources said.

In March, the Union Cabinet had increased dearness allowance from 5 per cent to 7 per cent. More than 48 lakh government employees and over 60 lakh pensioners will be benefitted from this increase in DA.

Dearness allowance is a cost of living adjustment allowance paid to government employees including pensioners. The DA is adjusted according to the inflationary trends in the country and to lessen its impact on employees.


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