&imwidth=800&imheight=600&format=webp&quality=medium "Union Cabinet increases Dearness Allowance for central government employees")
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has approved a 3 per cent increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners. The change in DA will be effective from July. The government's move, weeks before Diwali, has raised the existing DA rates from 55 per cent to 58 per cent of the basic pay.
The DA hike comes amid the festive season, when the masses tend to indulge in spending. Last month, the central government eliminated the 12 per cent and 28 per cent slabs of the Goods and Services Tax, reducing the tax on most of the items in these categories.
The government's move was aimed at boosting consumer spending.
This move may also boost the sentiment of consumers.The hike, aimed at offsetting the impact of inflation, will benefit approximately 49.19 lakh Central Government employees and 68.72 lakh pensioners.
The total financial implication of this decision on the exchequer is estimated at Rs 10,083.96 crore annually, said the government's statement.
The revision was made based on the 7th Central Pay Commission.
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The Union Cabinet also approved the Mission for Aatmanirbharta in Pulses.
The mission will be implemented over six years, from 2025-26 to 2030-31, with a financial outlay of Rs 11,440 crore.
For the Rabi Crops for Marketing Season 2026-27, the Cabinet Committee on Economic Affairs (CCEA), which is also chaired by Prime Minister Narendra Modi, approved the increase in the Minimum Support Prices (MSP).
The absolute highest increase in MSP has been announced for Safflower at Rs 600 per quintal, followed by Lentil (Masur) at Rs 300 per quintal.
Last month, the Union Cabinet approved Productivity Linked Bonus for the 10,91,146 railway employees. The government said in a statement that the bonus will be 78 days' salary.
"In recognition of the excellent performance by the railway staff, the Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved payment of Productivity Linked Bonus (PLB) of 78 days for Rs 1865.68 crore to 10,91,146 railway employees," it had said.