Govt approves 2% DA hike for central govt employees, pensioners from Jan 1
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners.
Effective from January 1, 2025, the revision raises DA and DR from 53% to 55% of basic pay and pension.
The hike, aimed at mitigating inflationary pressures, aligns with the 7th Central Pay Commission’s recommendations and will benefit around 48.66 lakh employees and 66.55 lakh pensioners.
The total financial burden on the exchequer is estimated at ₹6,614.04 crore annually.
The revised DA and DR will reflect in upcoming salaries and pensions, with arrears payable from January 1, 2025.
The government periodically revises these allowances based on inflation and price index trends to protect the real value of earnings.
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