Centre approves hike in DA by 2%

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The Union Government on Wednesday approved the two percent hike in the dearness allowance for government employees. The hike in DA would be effective from January 1, 2017.


The decision was taken at the cabinet meeting on Wednesday. The DA has been increased to neutralise the impact of inflation on their earnings.

The average CPI-IW to be taken into account for raising DA is 4.95% from 1 January to 31 December, 2017.

Since the government has already hiked the dearness allowance by 2% in October last year from 1 July , 2016, it will now raise it further by 2%.

The dearness allowance is paid as proportion of the basic pay of the central government employees.

Here are the highlights of other decisions taken at the Wednesday's cabinet meeting:

  • The Union Cabinet has approved Indian Institutes of Information Technology (Public- Private Partnership) Bill, 2017.
  • The Union Cabinet has approved special assistance for Andhra Pradesh in funding of externally aided projects and irrigation component of Polavaram project.
  • The Union Cabinet has approved the sale of 24% of equity holding in Lubrizol India Private Limited by Indian Oil to Lubrizol Corporation USA.
  • The Union Cabinet has approved revised MoU and Mode of Operation between India and Bangladesh for establishing Border Haats on India-Bangladesh border.

(OneIndia with inputs from PTI)

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