Bhubaneswar, April 18 -- The Centre has approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, offering a modest boost to incomes at a time when inflation continues to strain household budgets.

The hike, which is implemented twice a year to offset rising prices, will benefit nearly one crore employees and retirees across the country. With this revision, the DA component is set to rise further as a percentage of basic pay, translating into a marginal increase in monthly salaries and pensions depending on individual pay scales.

The decision comes after a delay that had sparked concerns and dissatisfaction among employee groups, who were expecting the announcement earlier in the year. While the r...