Union cabinet approves 4% increase in Dearness Allowance of employees

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Shillong, October 18: The Union cabinet, on Wednesday, granted approval for the release of an additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners, effective from July 1, 2023.

As per IANS, this increment represents a 4% rise over the existing rate of 42% of the basic pay and pension and is aimed at offsetting the impact of rising prices.

This increase adheres to the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The combined financial implication on the exchequer due to both DA and DR adjustments is projected to be Rs 12,857 crore per annum.

Approximately 48.67 lakh central government employees and 67.95 lakh pensioners will benefit from this decision, ensuring their financial well-being in the face of escalating living costs.

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