New Delhi/Alive News: The Union Cabinet on Wednesday approved a 3 percentage point increase in Dearness Allowance (DA) for central government employees, raising it from 60% to 63% of basic pay. The decision is expected to benefit around 48 lakh employees and 68 lakh pensioners.
Dearness Allowance helps government employees manage rising living costs and inflation. Pensioners receive a similar benefit called Dearness Relief (DR).
The latest increase follows the 2% hike approved by the Cabinet in April, which had raised DA and DR to 60%.
How Much Will Salaries Increase?
The additional amount will depend on an employee’s basic salary.
An employee with a basic pay of ₹18,000 will receive an additional ₹540 per month following the 3 percentage point increase. For an employee with a basic salary of ₹56,100, the monthly increase will be approximately ₹1,683.
According to the announcement, the revised allowance will be effective retrospectively from July. Eligible employees will therefore receive arrears for July, August and September along with their salary, subject to the applicable payment schedule.
DA Revised Twice a Year
The central government generally revises Dearness Allowance and Dearness Relief twice a year, with changes usually taking effect in January and July.
The revisions are based on inflation trends, including data from the All India Consumer Price Index for Industrial Workers (AICPI-IW).
DA is calculated as a percentage of an employee’s basic salary, while DR is calculated on a pensioner’s basic pension. Both benefits aim to protect the purchasing power of government employees and retirees as prices rise.
