GUWAHATI: The Union Cabinet has approved a 3% hike in Dearness Allowance (DA) for Central Government employees, effective from Wednesday, October 16.
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This decision, made just ahead of the Deepavali festive season, will benefit over 1 crore employees and pensioners. The recent increase raises the overall DA to 53% of the basic salary, as it seeks to provide relief amid rising costs.
According to an official press release, the hike follows the 7th Central Pay Commission's recommendations and will result in an additional annual burden of ₹9,448.35 crore on the exchequer.
Around 49.18 lakh government employees and 64.89 lakh pensioners will benefit from the raise. The last DA hike, a 4% increase, was announced in March, which came into effect from January 1, 2024.
The new increase aims to compensate employees and pensioners for the rising cost of living, especially during the festive period.