Cabinet clears 4% dearness allowance hike for central govt employees

On October 18th, in the city of New Delhi, the Union Cabinet officially approved the disbursement of an additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners, with effect from July 1, 2023. This increase constitutes a 4 percent boost over the existing rate of 42 percent applied to basic pay and pensions, and its primary purpose is to counteract the impacts of inflation.

This augmentation follows a predetermined formula rooted in the recommendations of the 7th Central Pay Commission. The collective financial impact on the government\’s budget, encompassing both DA and DR, will amount to Rs 12,857 crore annually.

This resolution is set to provide tangible benefits to an estimated 48.67 lakh central government employees and 67.95 lakh pensioners.

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