Union Cabinet approves 2% increase in Dearness Allowance

This increase is based on the recommendation of the Seventh Central Pay Commission

The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, providing a boost to their monthly income.

With this revision, the DA will rise in line with inflation trends, helping employees cope with rising living costs. The hike is expected to benefit millions of serving employees as well as retired personnel across the country.

Officials said the decision is part of the government’s regular review mechanism to adjust allowances based on changes in the cost of living. The revised DA is likely to be implemented from the current financial cycle, with arrears, if applicable, to be paid accordingly.

The move has been welcomed by employee unions, who have been seeking an upward revision amid increasing expenses.