New Delhi, April 18 -- The Cabinet has approved a 2 per cent increase in Dearness Allowance (DA) for central government employees. This decision, finalized during a Cabinet meeting on Saturday, raises the allowance from the current rate of 58 per cent to 60 per cent. The adjustment serves to address the long-standing wait of the workforce for a revision in 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 functions specifically to offset the impact of inflation on fixed incomes. The allowance is calcula...