Union Cabinet hikes dearness allowance by three percent, move to benefit 1.1 crore govt employees and pensioners

New Delhi: The Union Cabinet Tuesday increased the dearness allowance by 3 percent effective from 1 January, 2019, a move which will benefit 1.1 crore central government employees and pensioners. The decision in this regard was taken at the Union Cabinet meeting chaired by Prime Minister Narendra Modi. The Cabinet has approved additional DA of 3 percent over the existing rate of 9 percent to government employees and dearness relief to pensioners from 1 January, 2019, Finance Minister Arun Jaitley told reporters after the Cabinet meeting. The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners. This increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.