DA, DR hike cheer! The Cabinet is likely to approve a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for working and retired central government employees on Wednesday, sources told TOI. As the festival of Diwali nears, employees and pensioners of the Central Government in India have been anticipating an announcement regarding the DA and DR increment. Although such revisions typically coincide with major festivals to support employees with rising expenses, there has been a slight delay in the notification this year.The government implements biannual revisions of DA and DR, essential elements of government compensation and pensions, in January and July. These hikes are designed to protect employees and pensioners from the effects of inflation and help maintain their standard of living.According to an ET report, the 3 percent hike in DA, DR would contribute Rs 540 to the monthly earnings of staff receiving minimum basic pay of Rs 18,000 under the 7th Pay Commission, resulting in a total of Rs 28,440. For pensioners with Rs 9,000 minimum pension, the increase would add Rs 270, elevating their total pension to Rs 14,220 at the new 58 percent rate.The Union Cabinet has already given its approval for railway employees’ performance-linked bonus. The Confederation of Central Government Employees and Workers (CCGEW) had raised concerns about the delay, pointing out that the customary schedule of announcing in late September and disbursing arrears in early October has not been followed.The government implemented a 2 percent increase in DA/DR during March 2025, which took effect from January 1. This adjustment elevated the rate to 55 percent, benefiting employees and pensioners with additional financial support amidst rising costs.
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