New Delhi, Oct 1: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a 3% increase in Dearness Allowance (DA), raising it to 58% for central government employees and pensioners, a timely move ahead of Diwali. The decision will benefit approximately 49 lakh central employees and 69 lakh pensioners, Union Minister Ashwini Vaishnaw said. The hike will be effective from July 1, with a financial implication of ₹10,084 crore.

The revision comes after the Cabinet last month approved a performance-linked bonus for railway employees. Earlier in March 2025, DA and Dearness Relief (DR) were increased by 2%, effective January 1, bringing the rate to 55%, aimed at helping employees and pensioners manage inflation and rising living costs.

The DA for central employees is

See Full Page