Cabinet approves DA hike retrospectively for central government employees by 1%; This is how it impacts you

Key Highlights

• Central government employees will get an additional 1% DA while pensioners will get Dearness Relief.
• This will be applicable to salaries from July 1.
• This is expected to benefit 50 lakh Central government workers and 61 lakh pensioners.

Prime Minister Narendra Modi-led Union Cabinet on Tuesday approved 1% hike in Dearness Allowance (DA) to central government employees and pensioners. 
 
This will be applicable to all employees retrospectively from July 1, 2017, the cabinet said.
 
“Release of additional instalment of DA is an increase of 1% over the existing rate of 4% of the Basic Pay/ Pension, to compensate for price rise,” the government said.
 
This increase in allowance is estimated to benefit 50 lakh Central government workers and 61 lakh pensioners.
 
The Central government employees are still awaiting their hike in minimum wages to Rs 21,000 from the current Rs 18,000. The Cabinet’s decision on this is still awaited.
 
This is expected to raise the fitment factor three times over.

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7th Pay Commission: Fitment factor likely to be 3 with hike in minimum pay to Rs 21,000