Cabinet hikes Dearness Allowance by 4% for central government employees & pensioners



Quick Summary
The Union Cabinet has approved an additional instalment of Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. This increase amounts to 4% over the current rate, bringing it to 42% of basic pay/pension. The hike, effective from January 1, 2023, aims to offset rising prices and will benefit over 47 lakh employees and 69 lakh pensioners.

Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2023 The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today 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 rat
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FAQ :

The Union Cabinet has approved the release of an additional instalment of Dearness Allowance for Central Government employees and Dearness Relief for pensioners.

The Dearness Allowance and Dearness Relief have been increased by 4%, representing an additional instalment over the existing rate.

The additional instalment is effective from 01.01.2023.

This increase will benefit approximately 47.58 lakh Central Government employees and 69.76 lakh pensioners.

The combined impact on the exchequer is estimated to be Rs. 12,815.60 crore per annum.

The increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.




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