Sentinel Digital Desk
The Union Cabinet has approved a 3% increase in Dearness Allowance (DA) for central government employees, bringing the total DA to 53% of basic pay. This hike provides much-needed financial relief just before the Diwali festivities.
For example, if an employee's basic salary is Rs 40,000, the 3% DA hike will add an extra Rs 1,200 per month. This increases the total DA from Rs 20,000 to Rs 21,200 per month, boosting their disposable income.
Central government employees will receive their October salaries with the revised DA, along with arrears for the past three months. The hike offers timely financial support as employees prepare for the festive season.
Pensioners will also see an increase in their income, as the Dearness Relief (DR) will be adjusted to reflect the 3% hike, ensuring they too can cope with rising living costs.
The DA hike is based on the All India Consumer Price Index (AICPI), reflecting the government’s effort to protect employees from the impact of inflation and ensure their purchasing power remains stable.
What is DA?
Dearness Allowance is a cost-of-living adjustment for government employees and pensioners. It is revised twice a year to offset inflation, ensuring that salaries and pensions keep pace with rising prices and market conditions.