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Union Cabinet hikes dearness allowance for government employees by 5 per cent to 17 per cent; Union minister Prakash Javadekar says it's good news for govt employees

7th Pay Commission: Dearness Allowance, which is a cost of living adjustment allowance paid to government employees and pensioners to offset the impact of inflation, was increased to 12% in February with retrospective effect from January

The government will pay up to Rs 25,000 per month as risk allowance under the 7th Pay Commission, depending on the department and employee's length of service

This will put additional burden of Rs 1,071 crore on the exchequer annually

7th Pay Commission: Taking cues from Centre, the Rajasthan state government has hiked the Dearness Allowance (DA) and Dearness Relief (DR) paid to its staff and pensioners.

The proposal got the nod from Bihar's cabinet on Monday and will entail an additional burden of Rs 436 crore for the state.

The employees will start getting hiked salaries from February 2019. The arrears for the past three years will reportedly be deposited in their accounts in five instalments.

Dearness allowance is a cost of living adjustment allowance paid to government employees and pensioners. It is a component of salary, and is counted as a fixed percentage of the person's basic salary.

This is expected to benefit 7.5 lakh central government employees working in low-ranking jobs.

The changes will be effective from July 1, 2017 and will benefit 48 lakh employees in total, 34 lakh civilian employees and 14 lakh military employees.

After Union Cabinet approved the new allowance structure, here's how it benefited central government employees, both civilian and military.

The year-long wait might be over tomorrow, but the good news may come with a hint of disappointment.

The Centre on Wednesday increased dearness allowance and dearness relief to 4 per cent from existing 2 per cent from January 1, 2017, benefiting 48.85 employees and 55.51 lakh pensioners.

\"...Dearness Allowance payable to central government employees shall be enhanced from existing rate of 119 per cent to 125 per cent from January 1,2016,\" according to a Finance Ministry office memorandum bringing into effect the DA hike announced last month.

The new rate of DA will be implemented from January 1, 2016, which will be applicable for 4.8 million central government employees and 5.5 million pensioners.

Government raised dearness allowance to 100 per cent, from 90 per cent, benefiting its 50 lakh employees and 30 lakh pensioners. This increase in the dearness allowance by the UPA-2 govt comes ahead of the imposition of the model code of conduct by the Election Commission.