New Delhi: Much to market expectations, the Union Cabinet led by PM Narendra Modi on Friday (March 28) announced the much awaited Dearness Allowance (DA) and Dearness Relief Hike for lakhs of central government employees.
The Modi government today announced hiked the dearness allowance by 2 percent, thus taking the DA from 53 percent to 52 percent.
The last DA Hike was announced in October 2024. Union Cabinet approved a 3 percent Dearness Allowance (DA) increase for central government employees. A dearness allowance of 53 percent of basic pay is being provided to central government employees, as opposed to the previous 50 percent.
Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living.
The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July.
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