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Union Cabinet approves 2% DA Hike for Central Govt. Employees, Pensioners

Date:

VINOD BHAT


NEW DELHI, Mar 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the release of an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2025. This hike represents a 2% increase over the existing rate of 53% of Basic Pay/Pension, aimed at offsetting the impact of rising prices.

The move is expected to benefit approximately 48.66 lakh Central Government employees and 66.55 lakh pensioners across the country. The combined financial impact of the increase in both DA and DR is estimated to be Rs. 6614.04 crore annually.

This revision follows the standard formula aligned with the recommendations of the 7th Central Pay Commission, ensuring timely adjustments to account for inflation and safeguard the financial stability of employees and pensioners.

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