Good news for central employees! 11 per cent increase in DA

New Delhi: The Modi government has given good news for the central employees. Dearness Allowance of Central Employees has been re-introduced. In addition, it has been decided to increase the DA by 11% in three phases. The decision was taken at a cabinet meeting chaired by Prime Minister Narendra Modi.

Last year, it was decided to withhold inflation allowances for central employees at the beginning of the Corona transition. In April last year, the Union Cabinet had decided to withhold two installments of dearness allowance for employees. The dearness allowance installment is issued every six months. The first DA is issued on January 1 and the second on July 1.

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As per today’s decision, the moratorium on three installments effective from January 1, 2020, July 1, 2020 and January 1, 2021 has been lifted. After this, the employees will get a total increase of 11% in three weeks. In other words, the current rate of inflation allowance has been increased from 17 per cent to 28 per cent. The government’s decision will benefit central employees as well as pensioners.

What is inflation allowance?

Rising inflation drives up commodity prices. As a result, the value of money in people’s hands was reduced. To cope with this, dearness allowance is given to government employees. This increases the ability of employees to buy even when the prices of their necessities go up in the face of rising inflation.

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