Union Cabinet Approves 2% Hike in Dearness Allowance and Dearness Relief
| Key Aspect | Details |
|---|---|
| Event | Union Cabinet approves 2% increase in DA and DR |
| Date of Approval | March 28, 2025 |
| Chaired By | Prime Minister Narendra Modi |
| Effective Date | January 1, 2025 |
| New DA/DR Rate | Increased from 53% to 55% of Basic Pay/Pension |
| Beneficiaries | 48.66 lakh central government employees and 66.55 lakh pensioners |
| Financial Impact | Estimated annual burden on exchequer: ₹6,614.04 crore |
| Revision Basis | Based on All India Consumer Price Index for Industrial Workers (AICPI-IW) |
| Last Increase | July 2024 (DA rose from 50% to 53%) |
| Governing Policy | Aligned with 7th Central Pay Commission's recommendations |
| Purpose | To counter inflationary pressures and maintain real value of salaries |
| Next Pay Commission | Anticipation of 8th Pay Commission |