Since this will be effective from Jan 1, 2020, staff will be getting arrears for three months.

Amid all the bad news with regards to the impact of coronavirus, the central government had some good news for government employees. The Union government announced a hike of four per cent in dearness allowance (DA). The DA has hike from 17 per cent to 21 per cent. The decision will be effective from January 1, 2020.

The decision was announced by Union Minister Prakash Javadekar during a cabinet meeting. Javadekar said that this decision will be beneficial for 48 lakh employees and 65 lakh pensioners; this will benefit 1.13 crore families.

Since the decision will be effective from January 1, 2020, central government employees will be getting arrears for three months.

Apart from central government employees, even central government pensioners and those receiving family pension from the central government will be benefited. Therefore, the decision will also hike pensions received.

Dearness allowance is usually received by government employees to compensate for rising inflation. The decision announced today will put more money in the hands of government employees and pensioners. The decision has come at a time when Indian economy is in bad shape.