The Union Cabinet on Wednesday (September 28) increased the dearness allowance of its staff by 4 per cent. This hike will take the DA effectively to 38 per cent for central government employees. Apart from DA hike, the government has also decided to extend the PM Garib Kalyan Anna Yojana (PMGKAY) for another 3 months. The scheme under which free food grains are provided to the poor was ending on September 30.
Since the effective date for the latest dearness announcement hike is July 1, the staff would be paid the arrears with their latest salaries, in a festive cheer for about 47.68 lakh central government employees and 68.62 lakh pensioners and is also applicable for civilian employees and those employed in defence services. The central government revises dearness allowance and dearness relief on January 1 and July 1 every year, but this decision is usually announced in March and September.Previously, in March, the Cabinet had approved the proposal to increase the dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners by 3 per cent to 34 per cent of the basic pay from 31 per cent previously, effective January 1, 2022. The government, at the time, paid employees three months in arrears.