New Delhi, March 13: In major good news for around 50 lakh central government employees and 62 lakh pensioners, the Union Cabinet has approved a 4 percent hike in dearness allowance or DA raising it to 21 percent, news agency ANI reported on Friday. The decision to increase dearness allowance was taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi. Jammu and Kashmir, Ladakh Employees to Get Allowances of 7th Pay Commission.

It is yet to be cleared from when the increased DA would be effective. The DA was last increased in last August when the government approved a 5 percent hike, based on the recommendations of the 7th Pay Commission. In February last year, the DA was raised by three percent. Previously, the Cabinet had raised the DA from seven to nine percent last August 2018 which was implemented with retrospective effect from July 2018. 7th Pay Commission: Gujarat Government Raises DA For Employees by 5% in Effect From July 2019, Six-Month Arrears to be Paid.

DA, paid to central government employees and pensioners, is a cost of living adjustment allowance to mitigate the impact of inflation on people. The Modi government implemented the recommendations of the 7th Pay Commission or 7th CPC in 2016. The 7th Pay Commission recommended Rs 18,000 as minimum pay for the central government employees.

(The above story first appeared on LatestLY on Mar 13, 2020 01:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).