Guwahati: The Union Cabinet on Wednesday approved a 3% hike in Dearness Allowance (DA) for central government employees and pensioners, benefiting nearly one crore individuals across the country.
The revised allowance, which serves as a cost-of-living adjustment to counter inflation, will come into effect from July 1, 2025. DA is revised twice annually, in January and July, based on changes in the Consumer Price Index (CPI) for industrial workers.
The latest revision is expected to bring financial relief to both serving employees and retired staff amid rising household expenses. By linking the hike with CPI data, the government seeks to ensure that employees and pensioners remain better protected from the impact of inflation on essential goods and services.
The decision reflects the government’s commitment to safeguarding the financial well-being of its workforce and pensioners, while acknowledging their contribution to the nation’s progress.