Government Approves 2% Dearness Allowance Hike for Employees and Pensioners

New Delhi: In a move to support central government employees and pensioners amid rising inflation, the Union Cabinet has approved a 2% increase in Dearness Allowance (DA) and Dearness Relief (DR). The decision, announced by Union Minister Ashwini Vaishnaw, will benefit 68 lakh employees and 42 lakh pensioners across India.

The revised DA will rise from 53% to 55% and will be effective from January 1, 2025. The government estimates that this hike will result in an additional cost of ₹7,716 crore to the exchequer.

The Dearness Allowance is not uniform for all employees, as it varies depending on location and job role. Urban employees typically receive a higher allowance compared to those in rural areas.

The hike follows the 7th Central Pay Commission’s recommendations, ensuring that government employees and pensioners maintain their purchasing power despite economic challenges.

With 48.66 lakh central government employees and 66.55 lakh pensioners set to benefit, this decision provides much-needed financial relief to a large section of the workforce.