India, March 28 -- The Cabinet on Friday gave its nod to a 2 per cent hike in Dearness Allowance or DA for central government employees.

With this revision, the Dearness Allowance (DA) will increase from 53% to 55%, offering a salary hike for employees ahead of the expected 8th Pay Commission.

The previous hike took place in July 2024, when DA was raised from 50% to 53%.

DA is announced bi-annually to help central government employees cope with rising inflation. It is a part of the employees' take-home salary and is calculated as a portion of their basic pay.

For example, for a base pay of Rs.1 lakh, the DA would be 55% if the government announced a 2% hike, which would equate to Rs.55,000.

A 2% DA hike would raise the salary of an e...