Prior to Dussehra and Diwali, the central government increased the dearness allowance by 3%

Ahead of Dussehra and Diwali, the central government raised its employees' Dearness Allowance (DA) and Dearness Relief (DR) by 3% on Wednesday. The raise, which will go into effect on July 1, was authorized by the Union Cabinet. For 1.18 crore workers, this will be the second DA boost of the year. Among these, 49.2 lakh central government employees and 68.7 lakh pensioners will benefit from the DA.

During a briefing on the Cabinet's decisions, I&B Ashwini Vaishnaw stated that the total effect of raising both DA and DR on the exchequer would be ₹10,084 crore annually. An employee with a base salary of ₹60,000 will allegedly earn an additional ₹34,800 as DA as a result of the boost, up from the ₹33,000 they received following the March hike.

Nearly 1.15 crore employees and pensioners benefited from a 2% increase in DA for central government workers that the Cabinet authorized earlier in March. To offset the price increase, the basic pay/pension was increased by 2% on top of the current 53%. The basic wage was raised to 55% in March; assuming the 3% rise is granted, the total will now be 58%.