The central government is likely to increase the Dearness Allowance (DA) for its employees as early as Wednesday. Approximately 1.2 crore central government employees and pensioners are expected to benefit from this move. The decision could be taken during a crucial cabinet meeting scheduled for Wednesday, where the Modi government might approve a DA hike of 2-3% as a Holi gift.

Currently, central government employees receive DA at a rate of 53%. The proposed increase aims to provide relief amid rising inflation and improve the financial well-being of employees. If approved, the hike will be a significant boost for millions, reflecting the government’s efforts to support its workforce during challenging economic times.