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Diwali Bonanza for Central Govt Employees as Cabinet Approves 3% DA Hike
Sentiment: NeutralHigh Priority
What Happened?
The Union Cabinet has approved a 3% hike in Dearness Allowance for central government employees, increasing it from 60% to 63% of basic pay. This decision aims to help employees cope with rising living costs.
Key points
- The DA hike will cost the government Rs 10,016 crore.
- The previous DA increase of 2 percentage points was approved in April 2026.
- DA is revised twice a year, effective from January 1 and July 1.
- The increase aims to assist employees with rising prices.
Key insights
- The DA increase reflects the government's response to inflationary pressures.
- Pensioners will also benefit from the revised Dearness Relief.
- This adjustment may set a precedent for future DA revisions.
Why it matters
This increase could help central government employees manage their expenses during the festive season.
Source
India Today
