India and Bhutan approve/plan dearness allowance hikes for central government staff

The Union Cabinet in India, chaired by Prime Minister Narendra Modi, approved the constitution of the 8th Pay Commission and authorized an additional three‑percent installment of Dearness Allowance (DA) for central government employees and a matching Dearness Relief for pensioners, effective 1 July 2024. The increase is expected to cost about ₹9,448 crore annually and will benefit roughly 49 million employees and 65 million pensioners.

In Bhutan, a projected rise in DA for central government employees could lift the allowance from 60 percent to 63 percent starting 1 July 2026, pending the June 2026 All‑India Consumer Price Index for Industrial Workers (AICPI‑IW) data. A three‑percent increase would apply if the index reaches around 151; a higher inflation reading could push the rate to 64 percent.