The Modi Government has announced a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, bringing the total DA to 55% from the previous 53%. This decision, made on March 28,
The article from MSN discusses the recent announcement by the Indian government regarding a 2% increase in Dearness Allowance (DA) for central government employees, effective from January 1, 2025. This hike will raise the DA from 46% to 48%, benefiting approximately 4.8 million employees and 6.5 million pensioners. The increase aims to offset the impact of inflation on the cost of living. The decision was made following the recommendations of the 7th Pay Commission, which periodically reviews and adjusts allowances to align with economic conditions. This adjustment will also apply to other allowances like House Rent Allowance (HRA), which are linked to DA. The financial implications of this hike are significant, with an estimated additional annual expenditure of around Rs 12,815.60 crore for the government.