DA hike announcement likely today. Here’s what we know

In what could be a festive season windfall for over one crore central government employees and pensioners, the Union Cabinet is expected to officially announce a 3% hike in the Dearness Allowance (DA) later today. This move comes just in time for Diwali, offering much-needed financial relief as inflation continues to impact household budgets.
If the Union Cabinet officially announces the DA hike today, central government employees will receive their October salary with the increased DA and three months’ worth of arrears.
The DA is a crucial part of the compensation package for government employees, aimed at offsetting the effects of rising prices.
Currently, DA stands at 50% of basic pay, following a 4% increase in March 2024. A further 3% increase would bring the DA to 53% of basic pay, providing an additional boost to employees’ monthly earnings.
For instance, an employee earning a basic salary of Rs 22,000 could see their DA increase by Rs 660 per month, bringing their total DA to Rs 11,660.
Though there has been no formal announcement yet, sources suggest that the Union Cabinet is likely to finalise the hike in today’s meeting and make a subsequent announcement.
Central government employees have been eagerly awaiting this update, particularly in the lead-up to Diwali, when additional income is most welcome.
The DA hike is determined based on the All India Consumer Price Index (AICPI), which tracks inflation.
The government typically reviews the DA twice a year, in January and July, with adjustments announced in March and September. This potential October declaration aligns with past patterns and follows growing calls for relief amid rising living costs.
Pensioners will also benefit from the Dearness Relief (DR) increase, which is typically announced alongside the DA hike.
Like DA, DR helps retirees manage inflationary pressures by adjusting their pensions in line with price increases. This hike is expected to offer significant financial relief, particularly for those on fixed incomes who rely heavily on these adjustments to cope with daily expenses.