Government Approves 4% Increase in Dearness Allowance for Central Government Employees

New Delhi: In a significant move, the Union Cabinet, chaired by Prime Minister Narendra Modi, granted approval for an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, effective from January 1, 2024. The decision reflects a 4% increase over the existing rate of 46% of the Basic Pay/Pension, aiming to offset the impact of rising prices.

The combined financial impact on the exchequer, accounting for both Dearness Allowance and Dearness Relief, stands at Rs.12,868.72 crore per annum. This decision is expected to benefit approximately 49.18 lakh Central Government employees and 67.95 lakh pensioners across the country.

The adjustment aligns with the accepted formula, which is rooted in the recommendations of the 7th Central Pay Commission. The government’s proactive measure in enhancing DA and DR is geared towards ensuring the financial well-being of its employees and pensioners in the face of increasing inflationary pressures.

This decision is part of the government’s commitment to periodically review and revise the dearness allowance and dearness relief to keep them in line with the changing economic scenario. The move not only addresses the concerns of the government workforce but also underscores the government’s dedication to maintaining the financial welfare of its retired personnel during these challenging times.

The decision is poised to bring relief to a significant section of the Central Government employees and pensioners, contributing to their economic stability and safeguarding their standard of living.