The government has approved increasing the Dearness Allowances by 4 percent. Inflation allowance increased by 4%: Cabinet meeting has decided to increase inflation allowance by giving major relief to central employees and pensioners. According to information obtained from sources, the meeting has increased the allowance of 4 percent of the central government employees and pensioners. In a written reply to the Rajya Sabha last week, Union Minister of State for Finance Anurag Thakur informed that with the salary of March, central employees and pensioners will get inflation allowance.
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¶ Inflation allowances are rupees that are given to government employees in the country to improve living standards India, Pakistan and Bangladesh are the only countries in the world whose government employees are given allowance.
¶ This money is given so that even with the increase in inflation, the level of employee living will not suffer due to rupees. The money is given to government employees, public sector employees and pensioners.
¶It started during World War II. The soldiers were paid extra in addition to pay for food and other facilities. These rupees were then called food inflation allowances or dear food allowances. As salaries increased, so did the allowance.
Big government announcement for central employees and pensioners, increased inflation allowance by 4 percent
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¶ Mumbai’s garment industry in India was the first to start inflation allowance in 1972. Thereafter, the central government started giving inflation allowance to all government employees, so that rising inflation did not affect the government employees. It was enacted in 1972, giving the government employees an allowance under the All India Service Act 1951.