economy1 min read
Central Government Approves 4% Hike in DA and DR for Employees and Pensioners
The Union Cabinet has approved a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) to support central government employees and pensioners against inflation.
Key Points for Quick Revision
- The hike is 4% over the existing rate.
- Effective date of the increase is January 1, 2026.
- Benefits approximately 1.16 crore employees and pensioners.
- Based on the All India Consumer Price Index (AICPI) data.
Practice Questions
Q1. Which index is used to calculate the Dearness Allowance for central government employees?
- Wholesale Price Index (WPI)
- Consumer Price Index (CPI) - Industrial Workers
- GDP Deflator
- Sensex
Explanation: DA is calculated based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Q2. How many times a year is the Dearness Allowance typically revised?
- Once
- Twice
- Thrice
- Every quarter
Explanation: DA is usually revised twice a year, effective from January 1st and July 1st.