Diwali Bonanza: Union Cabinet approves 3 per cent DA hike for central government employees

The Union Cabinet on Wednesday approved a 3 per cent increase in the Dearness Allowance (DA) for central government employees, raising the total DA to 53 per cent of basic pay. The decision comes as a timely financial boost ahead of the Diwali season, providing much-needed relief amid rising inflation and escalating living costs.

The latest hike is set to ease the financial strain on employees by enhancing their monthly earnings. For instance, a central government employee with a basic salary of Rs 40,000 will see an additional Rs 1,200 per month, as the DA rises from Rs 20,000 to Rs 21,200. This increment not only boosts their disposable income but also helps to offset the impact of inflation, offering greater financial flexibility during the festive period.

The revised DA will be reflected in the October salary, with employees also set to receive arrears for the past three months, adding to the Diwali cheer. The increase extends to pensioners as well, who will benefit from a corresponding adjustment in their Dearness Relief (DR).

The adjustment in DA is calculated using the All India Consumer Price Index (AICPI), ensuring that the allowance keeps pace with changes in the cost of living. This move reaffirms the government’s ongoing commitment to supporting its employees in managing the financial pressures brought on by inflationary trends, while also recognizing the importance of providing timely relief to improve the quality of life. 

As inflation continues to challenge household budgets, this DA hike serves as a proactive measure to address the needs of the workforce, especially during a period marked by heightened expenditures and economic uncertainty.

Also read: Badruddin Ajmal demands return of Waqf properties in Assam, criticizes government’s stance