New Delhi, Mar 28: The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for central government employees, sources from the Economic Times said. The hike, aimed at offsetting inflationary pressures, will raise DA from 53% to 55%, leading to an increase in take-home salaries for employees.
The last DA revision was implemented in July 2024, when it was raised from 50% to 53%. Dearness Allowance is a cost-of-living adjustment given to government employees, pensioners, and family pensioners to help them cope with rising expenses. While the Pay Commission revises basic salaries every 10 years, DA is periodically adjusted to maintain employees’ purchasing power.
The latest increase is expected to benefit millions of central government employees and pensioners across the country. The decision comes as part of the government’s routine review of allowances to ensure salaries keep pace with inflation.
