Good news for central government employees! Cabinet approves two per cent DA hike

NEW DELHI: The union cabinet meeting chaired by the prime minister decided to increase the dearness allowance for employees and dearness relief for pensioners. The decision was taken in the Union Cabinet meeting held today. The DA will be increased by two percent.

As per the current revised rate, the dearness allowance for central government employees has been increased from 53 percent to 55 percent. The dearness allowance and dearness relief were also increased in October 2024. The increase was retroactive to July 1, 2024. At that time, the dearness allowance was increased from 50 to 53 percent. At that time, the government had an additional liability of Rs 9448.35 crore.

The current increase applies to central government employees, pensioners and family pensioners. The employees were hoping for more than a three per cent increase this time. While the Center announces salary increases once every 10 years, DA is increased periodically to ensure that employees and pensioners do not experience hardship due to price increases.