Dearness Allowance Increased for Central Government Employees

19 April 2013

Dearness Allowance for central government employees and Dearness Relief for central government pensioners was increased by 8% by the Union Cabinet yesterday. New rate of 80% will be effective from 1 January 2013.

DA is paid to central government employees, whose salaries are revised once in 5 years by the Pay Commission, to make for inflation. Dearness Allowance is calculated as a percentage of Basic Pay. Effectively DA becomes part of the basic pay. So for example if HRA is quoted as 20% of basic it means 20% of Basic Pay+DA.

Dearness Allowance is revised twice a year. Its calculations are decided on Consumer Price Index (CPI) for different localities.


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