Business

Cabinet Approves 2% DA Hike For Central Government Employees And Pensioners

The Union Cabinet approved a two percent increase in the Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1.

An official statement reveals that the decision will benefit approximately 48.66 lakh Central Government employees and 66.55 lakh pensioners.

Financial Impact On Government Exchequer

The increase in both DA and DR will have a combined impact of Rs 6,614.04 crore annually on the government’s finances.

This revision marks one of the two biannual hikes in DA and DR, which the government typically announces in March and October, with the latter usually coinciding with Diwali.

DA Hike Aligned With Inflation Rates

The expected 2 percent increase in DA aligns with inflation rates based on the consumer price index for industrial workers.

This year, inflation has eased compared to last year, when the government raised the DA by 3 percent in October and 4 percent in March.

After the 3 percent increase in October last year, DA had risen to 53 percent of the basic pay. With the new 2 percent hike, DA now stands at 55 percent of basic pay.

8th Pay Commission To Revise Wages And Allowances

In January this year, the Centre approved the formation of the 8th Pay Commission, tasked with revising the wages and allowances for Central Government employees.

The government is expected to formally constitute the commission soon, which will include the appointment of a chairman and at least two members.

While the government will continue to revise DA and DR biannually, it is likely that this increase will be the last before the 8th Pay Commission begins its discussions with various stakeholders.

Employee forums have also urged the government to merge the DA and DR components with the basic salary before the commission implements its report.

Previous Pay Commissions And DA Merger Rule

Under the 5th Pay Commission, the government integrated DA with basic pay once DA crossed 50 percent.

The government carried out this merger in 2004. However, this practice was discontinued under the 6th and 7th Pay Commissions.

This latest DA increase, alongside the expected developments with the 8th Pay Commission, marks a significant step in revising the wages and allowances of Central Government employees and pensioners.

Also Read: Gautam Adani & CM Soren Discuss Investment Prospects In Jharkhand

Purnima Mishra

Recent Posts

4415 Indians Evacuated From Iran And Israel Under ‘Operation Sindhu’: MEA

India evacuated 4,415 nationals from Iran and Israel under Operation Sindhu, the MEA said Friday,…

1 hour ago

PM Modi To Embark On Five-Nation Tour To Strengthen Global Partnerships

PM Narendra Modi will embark on a five-nation tour from July 2, visiting Ghana, Trinidad…

1 hour ago

Allahabad HC Directs UPPSC To Allow Petitioner A Scribe For PCS Main Exam

The Allahabad HC has directed the UPPSC to allow petitioner Sameer Khan to use a…

2 hours ago

Allahabad High Court Slams UP Officials For Defying Judicial Orders

The Allahabad High Court strongly rebuked three senior officials from Baghpat district, the Collector, SDM…

2 hours ago

Adani Group Becomes India’s Fastest-Growing Brand, Driven By Green Energy Focus

The Adani Group has emerged as India’s fastest-growing brand in 2025, registering a massive 82%…

3 hours ago

Pakistan: Flash Floods In Swat Sweep Away 18 Tourists; Claim Seven Lives

Flash floods struck Swat district, on Friday, sweeping 18 tourists, including women and children, into…

4 hours ago