Cabinet Approves 4% DA Hike for Central Government Employees and Pensioners
DA / DR 4% Hike for central government employees and pensioners
Cabinet Approves 4% Additional DA/DA Due Jan 2020
Union Cabinet on Friday (March 13, 2020) approved a 4% increase in Dearness Allowance for employees and pensioners of the Central government. Dearness Allowance/Dearness Relief is based on the rise in inflation and increase in prices of essential commodities.
The Dearness Allowance and Dearness Relief are granted to serving employees and pensioners of the Central Government respectively each year with effect from 1st January and 1st July and normally paid in the month of March and September respectively.
The Union government had earlier said that Dearness Allowance (DA) and Dearness Relief (DR) was due for Central Government Employees and Pensioners with effect from January 1, 2020.
In January 2020, the Union Government has approved the existing DA of Central Government Employees from 17 per cent to 21 per cent of the Basic pay with effect from Jan 1, 2020.
The hike of 4 per cent means that the monthly salary of all central government employees, Railway employees and Defence Forces Personnel will go up by Rs 720 to Rs 10,000 per month
4% Additional DA for Central Govt Employees wef 1.1.2020
DA Rate Chart for Central Government Employees and Pensioners
| Month / Year | Dearness Allowance (DA) Rate |
| January 2016 | 0 |
| July 2016 | 2% |
| January 2017 | 4% |
| July 2017 | 5% |
| January 2018 | 7% |
| July 2018 | 9% |
| January 2019 | 12% |
| July 2019 | 17% |
| January 2020 | Fixed DA 17% Due to Covid 19 disease (DA Suspended till July 2021) |
Check Also: Latest 7th CPC DA Table for CG Employees
Additional DA Freeze (Temporarily Suspended) for Central Govt employees for 18 months between January 2020 and June 2021.
Expected DA from July 2020 and Expected DA from January 2021 – Suspended DA Calculation
The Cabinet Committee already approved to increase 4% additional DA from January 2020 on the basis of Consumer Price Index (CPI). The next installment from July 2020 is expected to increase by 4% additionally. And another installment will also be expected to hike by 4% with effect from 1st January 2021.
The below-expected DA list:
- 1st January 2020 = Additional DA 4% (17% + 4% = 21%)
- 1st July 2020 = Additional DA 4% (Expected) (21% + 4% = 25%)
- 1st January 2021 = Additional DA 4% (Expected) (25% + 4% = 29%)