Union Cabinet Approves 3% Hike in Dearness Allowance for Central Government Employees and Pensioners

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2024. This decision brings a 3% increase over the existing rate of 50% of Basic Pay/Pension, aimed at compensating for rising inflation.

The increase follows the accepted formula based on the recommendations of the 7th Central Pay Commission. This move is expected to provide significant financial relief to government employees and retirees in the face of increasing prices.

The combined impact on the exchequer, due to both DA and DR, is projected to be Rs. 9,448.35 crore annually. The decision is set to benefit approximately 49.18 lakh central government employees and 64.89 lakh pensioners across the country.