The Union Cabinet has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2023. This represents a 4% increase on the current rate, aimed at compensating for rising prices. The decision will benefit approximately 48.67 lakh employees and 67.95 lakh pensioners, with an estimated annual cost of Rs. 12,857 crore.
Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 01.07.2023
48.67 lakh Central Government Employees and 67.95 lakh pensioners to benefit
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023 representing an increase of 4% over the existing rate of 42% of the Basic Pay/Pension, to compensate against price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,857 crore per annum. This will benefit about 48.67 lakh Central Government employees and 67.95 lakh pensioners.
FAQ :
The Cabinet has approved the release of an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.
The increase is effective from July 1, 2023.
The increase is 4% over the existing rate of 42% of the Basic Pay/Pension.
Approximately 48.67 lakh Central Government employees and 67.95 lakh pensioners will benefit.
The combined impact on the exchequer is estimated to be Rs. 12,857 crore per annum.
The increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission, to compensate against price rise.