3% hike in dearness allowance approved for government employees before Diwali

The central government is going to increase the dearness allowance (DA) by 3 per cent for its more than one crore employees and pensioners, taking the total dearness allowance from 38 per cent to 45 per cent. The decision was taken in a cabinet meeting this morning, a few weeks before Diwali.

This is a big relief for central government employees amid the festive season.

DA is given to government employees and pensioners to compensate for the increase in dearness allowance. This allowance, which is revised from time to time twice a year, is calculated on the basis of the latest Consumer Price Index for Industrial Workers.