New Delhi. Central government employees and pension holders are going to get Diwali gift from the government. The Union Cabinet, during its meeting held on Wednesday, has approved a 3 percent increase in dearness allowance and dearness relief. After this increase, DA has increased from 50 percent to 53 percent of the basic salary. Lakhs of government employees will benefit from this decision of the Central Government. Dearness Allowance is calculated on the basis of All India Consumer Price Index. There is a revision regarding DA every 6 months. Dearness relief is given to retired central government employees. The adjustment takes effect in January and July after the increase in DA. Announcement regarding DA is made in March and September. The DA increase announced in January extends to March. Similarly, the announcement of increase in DA in July goes till Diwali.
After the three percent DA increase, the basic salary of entry level government employees is expected to increase by Rs 540 on a monthly basis. This decision of the government will provide relief to about one crore central employees and pension holders. Employees are also expected to receive arrears for July, August and September. An increase in DA was expected after the Union Cabinet meeting on October 9. However, central employees and pension holders had to wait for some time for this amendment. Apart from this, Chhattisgarh Chief Minister Vishnu Dev Sai on Wednesday announced that dearness allowance (DA) for state government employees will be increased by 4% ahead of Diwali and festive season. Due to which it will become 50% of the basic salary. This increase will be effective from October 1.