Government Announcement: Cabinet Approves Additional Instalment of Dearness Allowance and Dearness Relief
Date: 18th October 2023
Source: Press Information Bureau (PIB) Delhi
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has granted approval for the release of an extra instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners effective from 1st July 2023. This move represents a 4% increase over the existing rate of 42% of the Basic Pay/Pension and aims to counteract the effects of rising prices. This increase is in accordance with the established formula, which is based on the recommendations of the 7th Central Pay Commission.
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has granted approval for the release of an extra instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners effective from 1st July 2023. This move represents a 4% increase over the existing rate of 42% of the Basic Pay/Pension and aims to counteract the effects of rising prices. This increase is in accordance with the established formula, which is based on the recommendations of the 7th Central Pay Commission.
Key Highlights:
- Instalment Details: An additional instalment of Dearness Allowance (DA) and Dearness Relief (DR) is approved.
- Effective Date: The increase is effective from 1st July 2023.
- Formula-Based: The decision is in line with the accepted formula based on the recommendations of the 7th Central Pay Commission.
- Exchequer Impact: The combined financial impact on the government's finances, taking into account both Dearness Allowance and Dearness Relief, amounts to Rs. 12,857 crore annually.
- Beneficiaries: Approximately 48.67 lakh Central Government employees and 67.95 lakh pensioners will benefit from this decision.
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| Cabinet approves 4% increase in DA |