New Delhi: A major decision has been taken by the Modi government at the Centre today for employees and pensioners. It has been decided to increase the Dearness Allowance (DA) as a Diwali gift for them. The Cabinet meeting on Thursday approved a 3 percent hike in Dearness Allowance for central government employees and pensioners.

The further increase in DA by 3 percent means that dearness allowance (DA) will now be 31 percent. More than 1 crore central government employees and pensioners will get the direct benefit of this increase. It may be recalled that in July this year alone, the government increased dearness allowance (DA Hike) by 11 percent to 28 percent. Earlier, DA was being paid at 17 percent.

In fact, the Labour Ministry had released data on the last three months of the AICPI (All India Consumer Price Index). These included figures for June, July and August. The AICPI Index has reached 123 points in August. This gave an indication that the government could further increase the Dearness Allowance. It is on this basis that the dearness allowance of central employees is fixed.

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