Union Cabinet likely to clear 4% hike in DA for central govt employees: Sources

The Union Cabinet is likely to approve a 4 per cent hike in dearness allowance (DA) for central government employees, sources told India Today. The Union Cabinet's decision may be announced after its meeting on Wednesday. The central government is likely to increase the dearness allowance from the current 42 per cent to 46 per cent. The move is likely to come just weeks before Diwali. 

In March this year, the Union Cabinet had increased the dearness allowance and dearness relief by 4 per cent to 42 per cent to benefit 47.58 lakh central government employees and 69.76 lakh pensioners. I&B Minister Anurag Thakur said that the combined impact on the exchequer would be Rs 12,815.60 crore per annum. The hike was effective from January 01, 2023.

The Cabinet had also hiked additional DA by 4 per cent in September last year, just weeks before Diwali. 

(With inputs from Chetan Bhutani)