Govt approves 2% dearness allowance hike for central govt employees, pensioners

The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for government employees and pensioners, according to sources following the Cabinet meeting.

The Dearness Allowance is linked to inflation and is revised twice a year, usually in January and July. It is calculated using the Consumer Price Index for Industrial Workers (CPI-IW), which is released every month by the Labour Bureau under the Labour Ministry.

This time, however, there was a delay in the announcement. The Confederation of Central Government Employees and Workers (CCGEW) expressed concern, noting that normally the hike is announced in late September and arrears are paid in early October.

During the meeting, the Prime Minister sharply criticised the Opposition over its refusal to support the Women’s Reservation Bill. He said the Opposition had made



a serious mistake by not backing the bill and would have to bear the political cost in the future.

He asserted that the Opposition’s stance reflects a negative mindset towards women and stressed that this message must reach every village across the country. The Prime Minister added that Opposition parties are now trying to justify their position after opposing the bill, and said they had effectively “defeated” the women of the country.

The Cabinet also approved the creation of a Sovereign Maritime Fund with a corpus of Rs 13,000 crore. The fund aims to provide stable and affordable insurance coverage for Indian-flagged vessels, as well as ships operating to and from India.

In addition, the Cabinet cleared the extension of the Prime Minister Gram Sadak Yojana (PMGSY) till 2028, with an additional allocation of Rs 3,000 crore.