DA hike: Will the centre hike dearness allowance for govt employees? All eyes on today’s cabinet meet

The central government is expected to announce a hike in the dearness allowance (DA) and dearness relief (DR) for government employees after its Cabinet meeting on Wednesday, as per reports.

Typically, the central government revises the DA twice a year, in January and July, with official announcements usually made later. DA is applicable to serving employees, pensioners receive DR.

The most recent DA adjustment, a 4 per cent increase, was announced this March, effective from January 2024. Currently, central government employees receive a DA of 50% of the basic salary, while pensioners receive a DR of 50% of the basic pension.


The Union Cabinet chaired by Prime Minister Narendra Modi is set to meet today. The decision on increasing the DA could be taken in the meeting but there is no official confirmation in this regard.

The increase in DA and DR, if announced, would benefit nearly 1.15 crore central government employees and pensioners, providing a significant financial boost amid rising living costs.

DA is a component of the salary designed to offset the impact of inflation. A hike in DA revises the effective salary of government employees periodically.