The Central Government has announced a 3 percent hike in Dearness Allowance (DA) and Dearness Relief (DR), providing much-needed relief to its employees and pensioners. The decision, which comes ahead of the festive season, will benefit around 1.18 crore individuals, including 50 lakh central government employees and 68 lakh pensioners.
With this hike, the DA for employees and DR for pensioners now stands at a higher rate, ensuring better compensation for inflation and rising costs of living. The revision will take effect from the beginning of the current financial year, and arrears are expected to be credited along with upcoming salary and pension payments.
Dearness Allowance and Dearness Relief are revised periodically by the government based on the All India Consumer Price Index, reflecting changes in inflation rates. This latest increase demonstrates the Centre’s attempt to provide financial support to its workforce and retired personnel amidst economic uncertainties and increasing household expenses.
Finance Ministry officials highlighted that the additional burden on the exchequer due to this hike is estimated to run into several thousand crores annually, but stressed that the decision was taken keeping in mind the welfare of employees and pensioners who are most affected by price fluctuations.
The announcement has been welcomed by employee unions and pensioner associations, which had been pressing for an upward revision for several months. Experts note that the increase is likely to boost consumer spending during the festival season, providing a positive push to demand in the economy.
The 3 percent hike also reflects the government’s commitment to periodically revising DA and DR to ensure that inflation does not erode the purchasing power of its employees and retirees. The move is expected to ease financial pressures and offer some cushion against the rising cost of living for millions across the country.
