India Approves 3% Dearness Allowance Hike for Central Government Staff

India's government has greenlit a 3 percent hike in dearness allowance for central government employees, pushing the overall DA to 63 percent of base salary. The decision, announced ahead of major festivals, will result in a notable increase to the take-home pay of millions of federal workers across the country.

The dearness allowance, a cost-of-living adjustment provided to government employees and pensioners, is revised semi-annually based on inflation indices. With the latest increase, central government staff will see their compensation packages substantially enhanced, providing relief against rising living costs.

The 63 percent DA rate applies across all central government employees and is expected to benefit both serving staff and pensioners. Officials estimate the increased payouts will place additional pressure on the government's salary and pension budget, though the administration considers the measure necessary given current inflation trends.

The approval comes as the government continues to balance employee welfare concerns with fiscal constraints. Trade unions representing government workers had previously urged the administration to raise the DA to maintain purchasing power, citing persistent inflation in essential commodities and services.