The Cabinet on Saturday cleared a 2 per cent increase in Dearness Allowance (DA) for Central government employees and pensioners.
The approved revision raises the existing DA by two percentage points. Dearness
Allowance is a cost-of-living adjustment provided to government employees and pensioners to help them cope with the impact of inflation.
With this change, monthly payouts for both employees and pensioners will go up.
The move comes at a time when employee groups have been calling for wider changes in the pay structure. These demands are linked to the proposed 8th Pay Commission, which is expected to look into salary revisions and related issues. In a memorandum submitted to the government, the National Council–Joint Consultative Machinery (NC-JCM) has proposed a much higher fitment factor of 3.83. If accepted, this could significantly increase the minimum basic pay from Rs 18,000 to around Rs 69,000, leading to a major revision in the overall pay structure.
Following the hike, both government staff and retired personnel will see an increase in their monthly income. The revision is aimed at adjusting earnings in line with rising costs, offering some financial relief.
