The Government of India has hiked the Dearness Allowance (DA) for the central government employees by 1% from 4 percent to 5 percent of the basic salary with effect from July 01, 2017. This will benefit about 49.26 lakh central government employees.
The Union Cabinet chaired by the Prime Minister, Narendra Modi, had approved this increase of the dearness allowance rate to the central government employees in its meeting held
In accordance with the accepted formula based on the recommendations of the Seventh Central Pay Commission (7th CPC), the dearness allowance is admissible on the basic pay to all categories of the central government employees.
Currently, the minimum basic salary among the serving central government employees in India is Rs. 18,000 and the maximum basic salary is Rs. 250,000 per month.
The retail inflation for industrial workers between January 01, 2017 and December 31, 2017 will be used to compute the increase in dearness allowance with effect from January 01, 2018.
Thus, the revised dearness allowance for the central government employees is likely to be 7 percent of the basic pay with effect from January 01, 2018.