Cabinet Approves 3% DA Hike For Central Govt Employees Ahead Of Diwali

New Delhi: The Union Cabinet on Wednesday approved a 3% hike in the Dearness Allowance (DA) for central government employees.

Union Minister Ashwini Vaishnaw made the announcement in a press briefing. “ “Union Cabinet has approved a 3% hike in DA for central government employees and Dearness Relief relief for pensioners. A total of Rs 9,448 crore annually will be added to the paycheck of central government employees…,” he said.

With this hike, the DA is now increased to 53 per cent of basic pay. This is expected to benefit over a crore central government employees and pensioners, while offering crucial financial relief amid rising inflation just ahead of the Diwali festivities.

Revised periodically twice a year, this allowance is calculated on the basis of the latest consumer price index for industrial workers. The most recent DA adjustment, a 4 per cent increase, was announced this March, effective from January 2024.