DA Hike News: Dearness Allowance for Central Employees Announced, 2% Approved by Cabinet
The Union Cabinet has officially approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, bringing much-needed relief amid rising inflation. This latest hike will benefit over 48 lakh employees and 67 lakh pensioners, ensuring better financial support in the wake of increasing living costs.
Key Highlights of the DA Hike
- Revised DA Rate: The DA for central government employees will now increase by 2%, effective from July 1, 2025.
- Beneficiaries: Over 1.15 crore individuals, including government employees and pensioners, will benefit.
- Impact on Salaries: Employees will see an increase in their monthly salaries, as DA is linked to basic pay.
- Pensioners’ Relief: Retired government employees will receive higher pension benefits due to the revised DA rate.
Why Was the DA Increased?
The government revises DA periodically to offset the impact of inflation on its workforce and retirees. The hike is based on the Consumer Price Index for Industrial Workers (CPI-IW), which reflects changes in the cost of living.
Financial Impact on Government
The 2% DA hike will impose an additional financial burden on the government, estimated at ₹12,500 crore annually. However, it is seen as a necessary measure to support employees amid rising expenses.
What’s Next?
The updated DA will be reflected in upcoming salaries of government employees, and pensioners will receive arrears accordingly. Many employee unions had been demanding a higher hike, and further negotiations may take place in the future.
Conclusion
This DA hike announcement brings relief to government employees and pensioners, ensuring they receive enhanced financial support against inflation. Stay tuned for further updates on salary revisions and government policies impacting central employees.
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