The Union Cabinet has approved a 3 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners respectively.
"The Union Government has approved an increase in Dearness Allowance and Dearness Relief by 3 per cent, effective from July 1," said Union Minister Ashwini Vaishnaw.
The decision is expected to benefit approximately 1.15 crore central government employees and pensioners.
It must be noted that the DA and DR are very important components of salaries and pensions. As government revises these allowances twice a year - in January and July, these government employees have been waiting with anticipation since July.
When Was DA Hiked Last?
The government had previously increased dearness allowance (DA) and dearness relief (DR) by 2 per cent, effective January 1, 2025. Following this increase, dearness allowance had increased from 53 per cent to 55 per cent of basic salary.
These hike were approved according to a formula established based on the recommendations of the 7th Central Pay Commission. Dearness allowances and dearness relief are provided to employees and pensioners to protect them from inflation and adjust their cost of living.
How Much Will The Salary Hike Be?
Employees with a basic salary of Rs 60,000 currently receive a dearness allowance of Rs 33,000. Following a 3 percent increase, their dearness allowance will rise to Rs 34,800. As a result, the gross salary for these employees will increase by Rs 1,800.
Cabinet Nod To 57 New Kendriya Vidyalayas
Meanwhile, the Union Cabinet has also approved opening of 57 new Kendriya Vidyalayas, Union minister Ashwini Vaishnaw said.
Out of the 57 new KVs, seven will be sponsored by the Union Home Ministry, and the rest by state governments.
At present there are 1,288 KVs, Vaishnaw told a media briefing on Cabinet decisions.
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