By what percentage did the Union Cabinet increase the

Solution

The Union Cabinet, under Prime Minister Narendra Modi, approved a 2% increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, effective January 1, 2025. This revision raised the DA from 53% to 55% in accordance with the formula based on the 7th Central Pay Commission recommendations. The decision will cost the government ₹6,614 crore annually and will benefit approximately 48.66 lakh central government employees and 66.55 lakh pensioners. The DA formula is based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW), which tracks changes in living costs.