Union Home Minister Amit Shah on Wednesday praised the Union Cabinet's approval of a 3 per cent increase in Dearness Allowance (DA) for central government employees, calling it a "festival gift" to the workforce. The hike, which also applies to Dearness Relief (DR) for pensioners, was approved during a meeting chaired by Prime Minister Narendra Modi.

As per an official release, "The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of DA to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three per cent over the existing rate of 50 per cent of the Basic Pay/Pension, to compensate against price rise."

Amit Shah took to X, expressing gratitude to Modi for the decision: "Giving a gift to the Central Government employees on the occasion of festivals, today the Cabinet led by Modi ji has increased the Dearness Allowance (DA) of Central Government employees and Dearness Relief (DR) to the pensioners by an additional 3%."

This decision will impact 49.18 lakh central government employees and 64.89 lakh pensioners, as Shah further emphasized, stating, "Many thanks to Modi ji for this special gift."

The DA is adjusted twice annually—on January 1 and July 1—based on the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW) released by the Labour Bureau. Given the July 2024 effective date, employees will receive arrears for the months of July, August, and September.

Shah also acknowledged another major development in the cabinet's approval of the Varanasi-Pt. Deendayal Upadhyaya Multi-Tracking Project, valued at Rs 2,642 crore. The project includes the construction of a road bridge over the Ganga and a 30-km railway network expansion. Shah credited Modi for "continuously promoting connectivity" in the nation.