The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given the green light to a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners, starting from January 1, 2025. This increase, raising the rate from 53% to 55%, is a move to address the challenges posed by inflation and will benefit more than 115 lakh individuals. The financial implications of this decision are projected to total Rs 6,614.04 crore per year.