The Cabinet Committee on Economic Affairs (CCEA) has approved a hike in the dear allowance of its employees. The said hike is 4% and has been raised from 17% to 21%. It has also approved an increase in dearness relief (DR). All the mentioned changes shall be effective from 1st January 2020.

Dearness allowance is the amount paid by the government to its employees for the cost of living adjustment and is calculated as a percentage of basic salary to mitigate the impact of inflation on their lifestyle.