NEW DELHI, APRIL 18 —Union Cabinet on Saturday cleared a proposal to enhance the Dearness Allowance and Dearness Relief by 2 percent. This move elevates the current rate from 58 percent to 60 percent, benefiting nearly 50 lakh employees and over 68 lakh pensioners.
The Chief Minister’s Office or relevant federal spokespersons declared that the hike, aimed at offsetting the impact of inflation, was sought to benefit approximately 49.19 lakh central government employees and 68.72 lakh pensioners. The new rates are backdated to January 1, 2024, meaning the exchequer will clear arrears alongside the updated monthly disbursements.
Calculated twice a year, the DA is linked to the monthly inflation data released by the Labour Ministry. The government maintained that the adjustment is a necessary step to support employees as the cost of living fluctuates. With the increase now finalized, the total annual hit to the national budget is projected to reach ₹6,791 crore.
This latest revision continues the trend of periodic adjustments to government compensation. Officials affirmed that the Union Cabinet had last approved a 3 percent increase in October 2025, which went into backdated effect from July 1 of that year. By raising the allowance to 60 percent, the administration stated it remains committed to protecting the real wages of its staff and the financial security of its retired community.
