📰 2% DA Hike Approved for Central Government Employees

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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 pensioners, according to reports.

The Dearness Allowance revision is part of the government’s standard mechanism to offset inflation and is calculated based on the 12-month average of the Consumer Price Index for Industrial Workers (CPI-IW). With this latest hike, the overall DA is expected to inch closer to the 60% mark.

The increase comes after a longer-than-usual wait this year, as no DA announcement was made in February or March. Typically revised twice annually, DA adjustments are aimed at helping employees and pensioners cope with rising living costs.

Explaining the trend, financial experts note that DA revisions are formula-driven and closely tied to inflation data. Over the years, DA has seen a steady rise—from around 2% in 2016 to nearly 60% now—reflecting cumulative price increases.

Meanwhile, employee unions have reiterated demands for broader reforms under the proposed 8th Central Pay Commission. Key suggestions include raising the minimum basic salary to ₹69,000 and revising the fitment factor to 3.83. There have also been calls to merge DA with basic pay once it reaches 25%, a move intended to better align salaries with inflation.

In a related development, the Madhya Pradesh government recently approved a 3% DA hike for its employees and pensioners, along with major development projects.

The latest central DA hike is expected to benefit millions of employees and pensioners across the country, offering a modest but timely financial boost.



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