Union cabinet approves 2% hike in DA for central government employees

The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for central government employees. With this revision, DA will rise from 53% to 55%, providing a salary boost to employees, pensioners, and family pensioners across the country.

This marks the second DA hike in the 2024-25 financial year. The last increase occurred in July 2024, when DA was raised from 50% to 53%. The latest revision is expected to offer relief to employees amid rising inflation and cost of living.

Dearness Allowance (DA) is a cost-of-living adjustment given to government employees to help them cope with inflation. While basic salaries are revised every 10 years by the Pay Commission, DA is periodically updated based on inflation trends. The government assesses the All India Consumer Price Index for Industrial Workers (AICPI-IW) to decide on DA hikes.

The increase will benefit central government employees, pensioners, and family pensioners. Reports earlier suggested that the government would announce the hike before Holi, bringing financial relief to lakhs of beneficiaries.

Although the Union Cabinet has given its approval, the final confirmation will come after a formal notification by the government. The decision was taken in a meeting led by Prime Minister Narendra Modi, following an evaluation of economic conditions.