India raises DA by 3% for central government employees

The Union Cabinet approved the dearness allowance hike on Wednesday, marking a significant relief for India's central government workforce ahead of the Diwali festival season. The increase, effective from July 1, will also apply to dearness relief for pensioners, bringing the combined DA and DR to new levels across the civil service.

Under the new arrangement, central employees will receive accumulated arrears from four months—July, August, September, and October—in a single payment coinciding with their October salary disbursement. This consolidated approach aims to provide immediate financial relief to government staff dealing with inflationary pressures on household expenses.

The decision reflects the government's periodic review of compensation structures for central employees, typically adjusted based on inflation indices. Officials noted the timing of the announcement was intended to support employee purchasing power during the festive period, when household spending traditionally increases.

Pensioners will also benefit from the corresponding increase in dearness relief, ensuring that retired government employees receive equivalent adjustments to their pension disbursements. The cabinet did not immediately announce further details regarding the precise quantum of additional payment individual employees would receive, which typically varies based on salary grade and classification within the civil service hierarchy.