Cabinet hikes DA by 4% for central Govt employees, pensioners

New Delhi: The central government on Friday decided to increase the Dearness Allowance by four per cent to 42 per cent for central government employees and pensioners.

The Union Cabinet chaired by the Prime Minister, Narendra Modi, has given its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023.  The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise, an officials statement reads.

The combine impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 12,815.60 crore per annum.

This will benefit about 47.58 lakh Central Governments employees and 69.76 lakh pensioners.

This increase is in accordance with the accepted formular which is based on the recommendations of the 7th Central Pay Commission.

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