DA Hike: Modi government’s gift to central employees, two percent increase in dearness allowance; Approval from Cabinet
New Delhi| The Union Cabinet has approved a 2% increase in Dearness Allowance and Dearness Relief (DA & DR) for Central Government employees. Union Minister Ashwini Vaishnav announced this on Friday. With this amendment, DA and DR will increase from 53% to 55%. This will increase the salaries of employees and pension of retired employees. The last time DA was increased was in July 2024, when it was increased from 50% to 53%.
The combined impact on the exchequer due to increase in both DA and DR will be Rs 6,614.04 crore per annum. About 1.15 crore central government employees and pensioners will benefit from this decision of the government.
Announcing the Cabinet decision, the Union Minister informed that the decision related to additional DA and DR will come into effect from 01 January 2025 and the government will spend an additional Rs 7,716 crore under this head. The rate of DA is decided based on the increase in the 12-month average of the All India Consumer Price Index (AICPI-IW). In the DA increase item, the government will spend an additional Rs 3,622 after this increase. The DR item will cost an additional Rs 2,992.
Dearness Allowance (DA) is an allowance given to government employees to help them deal with rising inflation. Its objective is to ensure that salaries do not lose their value due to rising inflation. The basic salary of employees is determined every 10 years by the Pay Commission. Additionally, DA is changed from time to time to keep pace with inflation.
Who will benefit from increasing DA?
1.Central Government Employees
2.Pensioner
3.Family pensioner
Good news for Seemanchal of Bihar also from Union Cabinet?
The Cabinet has also approved the inclusion of Kosi Mechi Inter-State Link Project of Bihar under the Pradhan Mantri Krishi Sinchai Yojana-Quick Irrigation Benefit Programme. Farmers of Seemanchal area of Bihar will get big benefits by taking this decision.
Union Information and Broadcasting Minister Ashwini Vaishnav informed that the Cabinet Committee on Economic Affairs has also approved central assistance of Rs 3,652.56 crore to Bihar to complete this project with an estimated cost of Rs 6,282.32 crore by March, 2029. The project envisages diversion of a portion of Kosi’s surplus water for expansion of irrigation to the Mahananda Basin in Bihar through reconstruction of the existing East Kosi Main Canal.
