In a move that is sure to bring cheer to countless central government employees and pensioners, the union cabinet yesterday (19 February) approved raising the dearness allowance (DA) by 3 per cent with effect from 1 January 2019, reports Mint.
Finance Minister announced the decision after the conclusion of the cabinet meeting, stating that the DA is being hiked by 3 per cent over the current rate of 9 per cent.
Around 48.41 lakh central government employees and another 62.03 lakh pensioners will benefit from the DA increase.
This hike is in line with the formula which was agreed to on the basis of the Seventh Central Pay Commission’s recommendations.
DA is a part of the overall salary of an employee and is calculated as a percentage of the basic pay. It is intended to provide financial security against inflation which increases the cost of living year on year.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.