Union Cabinet Approves 2% Increase in Dearness Allowance for Central Government Employees
DA hike: Cabinet approves 2% increase in dearness allowance for Central govt employees
The Economic Times
Image: The Economic Times
The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners, addressing concerns over delayed payments. This adjustment is based on inflation data and follows a previous 3% hike approved on October 1, 2025.
- 01The Union Cabinet approved a 2% increase in DA for Central government employees.
- 02The last DA hike was a 3% increase on October 1, 2025.
- 03DA adjustments are based on inflation data from the All India Consumer Price Index (AICPI).
- 04Employees are awaiting clearance of three months' arrears related to this increase.
- 05The revision follows a biannual cycle reflecting inflation trends.
Advertisement
In-Article Ad
On Saturday, the Union Cabinet of India approved a 2% increase in Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners. This decision comes after concerns regarding delays in the allowance release, with employees requesting the clearance of three months’ arrears. The last adjustment was a 3% increase in DA, effective from July 1, 2025, which raised the allowance from 55% to 58% of basic pay. The DA is calculated biannually based on inflation data from the All India Consumer Price Index (AICPI), ensuring that government employees' compensation keeps pace with rising living costs. This latest hike aims to provide timely financial relief to employees amid ongoing economic pressures.
Advertisement
In-Article Ad
The increase in Dearness Allowance will provide financial relief to Central government employees and pensioners, helping them manage rising living costs.
Advertisement
In-Article Ad
Reader Poll
Do you think the DA hike is sufficient to cope with inflation?
Connecting to poll...
Read the original article
Visit the source for the complete story.