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%, leading to a salary boost for employees. The last DA increase happened in July 2024, when it was raised from 50% to 53%.

What is DA?

Dearness Allowance (DA) is extra money given to government employees to help them cope with rising prices. As the cost of goods and services goes up due to inflation, DA makes sure that employees' salaries do not lose their value. While the Pay Commission decides basic salaries once every 10 years, DA is updated regularly to keep up with inflation.

Who will benefit from the DA increase?

The DA increase will help central government employees, pensioners, and family pensioners. Many reports earlier suggested that the government might increase dearness allowance (DA) and dearness relief (DR) ahead of Holi. This 2% hike will benefit both employees and pensioners by increasing their monthly income and providing financial stability.

How is DA decided?

The government decides the Dearness Allowance (DA) based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). Before increasing or decreasing DA, officials check price trends from the last six months. The final approval comes after a Cabinet meeting, which is led by Prime Minister Narendra Modi. Employees and pensioners will soon get official updates on this change.

This DA hike will help government employees and pensioners by reducing their financial burden, making it easier for them to manage daily expenses.

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