Chandigarh, 28 March 2025 (Punjab Khabarnama Bureau): The Cabinet on Friday gave its nod to a 2 per cent hike in Dearness Allowance or DA for central government employees, The Economic Times reported, citing unnamed sources.
With this revision, the Dearness Allowance (DA) will increase from 53% to 55%, offering a salary hike for employees ahead of the expected 8th Pay Commission.
The previous hike took place in July 2024, when DA was raised from 50% to 53%.
What is Dearness Allowance (DA)?
- DA is extra money that the government and public sector employers give to their employees and pensioners to help them cope with rising prices.
- It’s calculated as a percentage of the basic salary and gets revised every six months based on how much prices have gone up.
- There are two types—one for government employees and another for public sector workers.
- DA is taxable, so it has to be mentioned in income tax filings.
This is a developing story. More details are awaited.
Summary: The Union Cabinet has cleared a Dearness Allowance (DA) hike for central government employees, providing financial relief amid rising inflation.