Question
By what percentage did the Union Cabinet increase the
Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners in 2025?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.
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