DA Hike: BIG! Government raises Dearness Allowance of Central Government employees by 4% to 38%

DA hike latest news today: The Union Cabnet has increased Dearness allowance (DA) of the Central Government Employees by 4 per cent taking it effectively at 38 per cent from 34 per cent. Over 50 lakh central government employees and 62 lakh pensioners are likley to benefit from the current hike. 

Earlier, today Zee Business had reported on the story informed about the likleihood of the increase in DA by 4 per cent. The Union Cabinet which is slated to meet today could give its approval to hike the inflation-linked allowance for government employees. The meeting will be presided over by Prime Minister Narendra Modi.

After today's hike of 4 per cent, the total DA paid to government employees will reach 38 per cent. DA is a part of the salary which is calculated as a specific percentage of the basic salary which is then added to the basic salary.

The DA hike will result in an increase in wages for approximately 52 lakh Central government employees. State governments are also likely to follow suit. The hike in DA will come as a major relief to workers amid skyrocketing inflation.

The DA is revised by the government usually twice in a year -- January and July.

Apart from DA hike, the Union Cabinet could also decide to extend the PM Garib Kalyan Anna Yojana for another 3 months till December. The cost to state exchequer will be around Rs 40,000 cr. 

The Union Cabinet has also approved many railway redovelopment projects also. The cabinet has approved production linked bonus for railway employees, Zee Business has learnt thrugh its sourses. Fo non-gazetted employees, a proposal for 78-day bonus has been received. An estimated 11 lakh employees will benefit from it. The additional cost for Railway will be around Rs 2000 cr.