Diwali Delight: Govt Increases Dearness Allowance by 3%

The Centre has announced a 3% increase in Dearness Allowance, effective from July 1, benefiting over 1 crore employees and pensioners. This hike, costing Rs 9,448 crore annually, aligns with Seventh Central Pay Commission recommendations. It follows a 4% increase earlier this year.

The central government on Wednesday announced a 3% hike in Dearness Allowance (DA) effective from July 1, benefitting more than 1 crore employees and pensioners. This strategic move comes just in time for the Diwali festival, bringing festive cheer to many households.

Union Minister Ashwini Vaishnaw confirmed after the Cabinet meeting that the Union Cabinet approved this increase applicable to both central government employees and pensioners, raising Dearness Relief (DR) by 3% of the basic pay or pension. The financial implication is estimated at Rs 9,448 crore annually.

This adjustment, based on the All India Consumer Price Index, follows a previous 4% increase enacted in March. The decision aligns with the recommendations of the Seventh Central Pay Commission and is aimed at mitigating the effects of rising prices on salaried citizens and retirees.

(With inputs from agencies.)