The Union Cabinet approved a 2 per cent hike in Dearness Allowance (DA) for central government employees, providing relief amid rising inflation.
The decision follows growing demands from employee unions for broader salary reforms under the proposed 8th Pay Commission. The National Council–Joint Consultative Machinery (NC-JCM) recommended a fitment factor of 3.83, which could raise the minimum basic salary from Rs 18,000 to nearly Rs 69,000.
The council also proposed expanding the definition of “family” to include dependent parents, reducing pay disparities, and linking allowances more closely to inflation. Employee representatives said the DA hike is a positive step but urged the government to accelerate comprehensive pay revisions.
In another major decision, the Cabinet approved the creation of a Rs 13,000 crore Sovereign Maritime Fund to support Indian-flagged ships with affordable insurance coverage. The fund aims to strengthen India’s maritime sector and reduce dependence on foreign insurers.
Additionally, the government is likely to extend the Pradhan Mantri Gram Sadak Yojana (PMGSY) till 2028, with an additional allocation of Rs 3,000 crore to improve rural connectivity.
Officials said the DA increase will benefit millions of employees and pensioners, reinforcing the Centre’s commitment to welfare and economic stability.
