SRINAGAR: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2025. The increase of 2 per cent raises the existing rate from 53 per cent to 55 per cent of Basic Pay/Pension to offset inflation.
The move will benefit approximately 48.66 lakh Central Government employees and 66.55 lakh pensioners, with an estimated financial burden of Rs 6,614.04 crore per annum on the exchequer.
The hike follows the prescribed formula based on the recommendations of the 7th Central Pay Commission. The government periodically revises DA and DR to ensure that employees and pensioners are compensated for the rising cost of living.
