On 16 October 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 3% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective from 1 July 2024. This raises the DA and DR from 50% to 53% of the basic pay/pension, aiming to offset the effects of inflation.
The increase benefits around 49.18 lakh employees and 64.89 lakh pensioners, with a total financial burden of ₹9,448.35 crore annually. Employees will also receive arrears for July, August, and September with their revised payments. DA/DR adjustments are made biannually based on inflation data.
