The central government has approved the increase in dearness allowance by 3%. This will benefit the central government employees and pensioners. They will get additional money in the form of salary and pension. Earlier in March, the government increased 2% DA.
Dearness allowance hike: Before Diwali, the central government has given a big gift to its employees. The Union Cabinet meeting on Wednesday approved the DA (Dearness Allowance) to increase 3%. This will benefit the central government employees and pensioners. Increased dearness allowance will be applicable from July 1.
This step of the central government aims to provide relief to about one crore employees and pensioners. Dearness allowance is a living cost adjustment. The government gives it to its employees and pensioners to compensate for the impact of inflation on their domestic expenses. This decision will benefit the people working and retired.
This increase in dearness allowance has been made in accordance with the recommendations based on the Consumer Price Index (CPI) data for industrial workers. It form the basis of calculation of DA amendment twice a year. Usually, dearness allowance is amended every year in January and July.
2% increase in dearness allowance in March
Earlier in March 2025, the government approved an increase of 2% in dearness allowance. Due to this, DA had increased from 53% of basic salary and pension to 55%. It has increased to 58% after the new increase. This will increase the tech-home salary and pension.
How much benefit will the employees get due to increasing DA?
For example, an employee with a basic salary of Rs 50,000 currently gets Rs 26,500 as a DA after the previous increase. Now DA has increased by 3 percent. This will increase the amount received as DA.
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After the cabinet decision, the increase in dearness allowance before the festive season will bring additional money in the hands of central government employees and pensioners. It is also expected to have a positive impact on consumer expenses.
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