Union Cabinet Approves DA Hike for Central Government Employees – Latest Update

Union Cabinet Approves DA: Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 2% hike in dearness allowance (DA) for central government employees and a corresponding increase in dearness relief (DR) for pensioners.

With the 2% hike, the rate of DA of central government employees has increased to 55% of the basic pay.

"The Union approved to release of an additional instalment of DA to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53% of the Basic Pay/Pension, to compensate against price rise."

Also Read: Kolkata Curator Denied Us Training at Eden Gardens: Ex-Indian Cricketer Fuels KKR Pitch Controversy

This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.

The revised salary and pension, which will benefit about 48.66 lakh employees and 66.55 lakh pensioners, will come into effect from January 1, 2025.

The combined impact on the government exchequer on account of increase in both Dearness Allowance and Dearness Relief would be ₹6,614.04 crore per annum, according to an official release.

Currently, central government employees and pensioners get their DA and DR respectively according to the recommendations of the 7th Central Pay Commission (CPC).

The DA/DR hike is based on the 12 month average of All India Consumer Price Index for Industrial Workers (AICPI-IW), published by the Labour Bureau.

Also Read: Bangkok Skyscraper Collapses After Strong Myanmar Earthquake Tremors | Watch Video

The announcement comes ahead of the formal constitution of the 8th Pay Commission for revising the salaries and pensions of central government employees.

What Is Dearness Allowance?

DA is a cost-of-living adjustment granted to government employees to help offset the impact of inflation. It ensures that salaries retain their purchasing power despite rising expenses. While basic salaries are determined by the Pay Commission every 10 years, DA is revised periodically to align with inflation trends.

Can DA also be increased for state government employees?

The Cabinet approves DA only for central government employees. States mostly follow suit. However, they may not follow it or may increase DA out of turn.

Also Read: Kartik Aaryan Smitten by Sreeleela During Chai Date, Sings ‘Tu Meri Zindagi Hai’ Instead of ‘Aashiqui 3’