The government announced a 2% hike in Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners, raising the new DA rate to 37% effective November 1.
Why it matters: Understanding changes in DA and DR is crucial for exams as it impacts government expenditure and inflation adjustments for employees and pensioners.
Recent Announcement
The government has declared a 2% increase in Dearness Allowance (DA) for its employees and Dearness Relief (DR) for pensioners. This adjustment raises the DA rate to 37%, effective from November 1.
Understanding Dearness Allowance and Dearness Relief
Dearness Allowance is a cost of living adjustment allowance paid to government employees, while Dearness Relief is the equivalent adjustment for pensioners. These are revised periodically to offset inflation and maintain the purchasing power of employees and pensioners.
Key facts
- 2% hike in DA and DR announced.
- New DA rate is 37%.
- Effective from November 1.
In this story
Source: The Times of India