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

Last updated: 25 March 2023

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 rate of 38% of the Basic Pay/Pension, to compensate against price rise.

Govt Hikes Dearness Allowance by 4 for Employees and Pensioners

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.

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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