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Informist, Friday, Mar. 28, 2025

 

--Govt: Hike in dearness allowance to cost INR 66.14 bln per yr to exchequer 

--Cabinet OKs hike in dearness allowance to 55% from 53% for govt staff 

 

NEW DELHI – The Union Cabinet Friday approved a 200-basis-point hike in dearness allowance and dearness relief to 55% of basic pay and pension for central government employees and pensioners, respectively, effective Jan. 1. The hike will cost the exchequer INR 66.14 billion per year, Information and Broadcasting Minister Ashwini Vaishnaw said at a press conference.

 

The move is set to benefit 4.87 mln employees and 6.66 mln pensioners, the government said in a press release. "This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission."

 

The government typically hikes the dearness allowance twice a year. In October, it had hiked the dearness allowance and dearness relief by 300 bps to 53% of basic pay and pension.  End

 

 

Reported by Krity Ambey

Edited by Akul Nishant Akhoury

 

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