Centre Hikes DA by 1 % for 1.1 crore employees and pensioners

Centre Hikes DA by 1 % for 1.1 crore employees and pensioners

The central government announced a hike of Dearness Allowance for pensioners and Central government employees by around 1 percent relief as compared to present 4 percent. The decision was officially announced by the government in the cabinet meeting.

Date of implementation

  • According to the sources it is certain that the new rate for dearness allowance will come into effective for the pensioners and employees starting from 1st July 2017.

Announced by

  • The decision for the hike in DA was given out by the Prime Minister Mr. Narendra Modi in accordance with his Union cabinet ministers in an official meeting.


  • It is certain that the new revised rates for Dearness Allowance is expected to offer benefit to over 61.17 pensioners within the country and over 49.26 lakh employees working in the central government sectors in various offices.

Key Features

  • It is certain that the new hike will help compensate the employees and pensioners against the price rise within the country.
  • It is also certain that the overall impact of both Dr and DA is expected to be around 3068.26 crore Rupees yearly and 2045.50 crore Rupees yearly.
  • The overall impact will be calculated for a period of eight months starting from July till February 2018 for fiscal year 2017-18.
  • It is also certain that the central government is aiming to revise the payment of gratuity funds for the employee from the private sectors after amendment bill is passed in the cabinet meeting.
  • The new gratuity payment bill shall be implemented for the fiscal year 2017-18 once passed in the parliament.
  • It is also expected that with the new implementation pensioners and employees can expect to lower the impact of price hike and inflation factor as a relief on account of DR and DA revised rates.
  • This is the first time when the government has taken the steps of considering revising DR and DA rates against the rising economy and inflation.
  • Under the new implementation it is also certain that the government aims at offering with double gratuity funds to the private sector employees up to the limit of around Rs 20 lakh that is very much similar to the ones paid to employees working in government sectors.


With the new implementations in both private and government sector it is certain that the government aims at offering better benefits to its employees.

Leave a Comment