DA Hike BREAKING NEWS: Cabinet set to approve Dearness Allowance for Central employees and pensioners today, reports

The Union Cabinet is set to make a final decision in its meeting today, India Today reports. If approved, the hike will benefit both current government employees and pensioners.

The Union Cabinet is likely to discuss an increase in Dearness Allowance (DA) for central government employees and pensioners in its meeting today, according to sources at India Today. If approved, the new DA will apply from July 1. This step is expected to give relief to nearly one crore employees and pensioners. DA is an extra payment added to salaries and pensions to help people manage rising prices and daily expenses caused by inflation.”

The Union Cabinet is set to make a final decision in its meeting today, India Today reports. If approved, the hike will benefit both current government employees and pensioners.

The increase is likely to follow the recommendations based on the Consumer Price Index (CPI) for industrial workers. This index is used to decide how much the Dearness Allowance (DA) should be revised.

Dearness Allowance (DA) and Dearness Relief (DR) are reviewed twice a year, in January and July, based on inflation shown by the All India Consumer Price Index for Industrial Workers (CPI-IW). Although the new rates are announced a few months later, employees and pensioners receive arrears to cover the delay.

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This hike is likely the last one under the 7th Pay Commission, as the 8th Pay Commission is expected to start in January 2026. Around 48 lakh government employees and 68 lakh pensioners will benefit from it. While the increase may seem small at 3 per cent, its timing before the festive season, along with arrears, will give families some extra money for year-end expenses.