New Delhi, March 28: The Union Cabinet on Friday approved a 2 percent hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. This hike will be effective from January 1, 2025 and will benefit more than one crore employees and pensioners.
Informing about the decisions of the Union Cabinet at the National Media Center, Information and Broadcasting Minister Ashwini Vaishnav said that the Union Cabinet chaired by Prime Minister Narendra Modi has approved the release of an additional installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners from January 1, 2025, which represents an increase of 2 percent in the existing rate of 53 percent of basic pay or pension, to compensate for the price rise.
He said that the increase in both dearness allowance and dearness relief will have a combined impact of Rs 6614.04 crore per annum on the exchequer. This will benefit about 48.66 lakh central government employees and 66.55 lakh pensioners. This increase is as per the approved formula, which is based on the recommendations of the 7th Central Pay Commission.
