The Union Cabinet raises DA and DR for retirees and union government employees.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, effective January 1, 2025.

This increase raises DA and DR from 53% to 55% of basic pay and pension, benefiting approximately 48.66 lakh employees and 66.55 lakh pensioners.

The revision aims to offset inflationary pressures and ensure financial stability for beneficiaries, with a financial impact of ₹6,614.04 crore annually on the exchequer.

The hike follows the formula recommended by the 7th Central Pay Commission and will be included in April salaries along with arrears for January to March 2025