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THe unification locker on sabbatum sanctioned a 2 per cent increment in Dearness Allowance (DA) for central government employees. The decision, finalised during a Cabinet meeting, raises the allowance from 58 per cent to 60 per cent.The adjustment addresses the long-standing wait by the workforce for a revision to their compensation structure. The 2 per cent hike also applies to Dearness Relief (DR) for pensioners, which similarly increases from 58 per cent to 60 per cent.The Dearness Allowance is a fundamental cost-of-living adjustment designed to support government employees and pensioners. It specifically offsets the impact of inflation on fixed incomes. The allowance is calculated as a percentage of the basic pay and undergoes periodic revisions based on established inflation indices to maintain the purchasing power of the workforce.The allowance, linked to inflation, is revised twice a year, typically in January and July. It is worked out based on the Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau under the Labour Ministry.

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Cabinet okays 2 per cent DA hike for central government employees

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