Cabinet hikes Dearness Allowance (DA) by 4% for central government employees, pensioners

Union Minister Anurag Thakur announced that Central government employees would receive a 4% increase in dearness allowance, bringing the total DA to 42%.

The Union Cabinet approved an increase in the dearness allowance and dearness relief by 4 per cent to 42 per cent, benefiting 47.58 lakh central government employees and 69.76 lakh pensioners.

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More About The hike in Dearness Allowance (DA) by 4% for central government employees, pensioners:

According to I&B Minister Anurag Thakur, the combined impact of both the Dearness Allowance and Dearness Relief on the exchequer will be Rs 12,815.60 crore annually. The Cabinet Committee on Economic Affairs (CCEA) meeting was held, and the release of the additional dearness allowance installment to employees and dearness relief to pensioners will be effective from January 01, 2023.

Dearness allowance and dearness relief: 7th Central Pay Commission:

According to government regulations, the increase in dearness allowance and dearness relief is based on the recommendations of the 7th Central Pay Commission and is revised biannually, in January and July. The most recent increase was announced on September 28, 2022, and was effective from July 1, 2022.

What is Dearness Allowance:

The Dearness Allowance is a constituent of the remuneration given to the employees of the Central Government that serves to mitigate the effects of inflation on their present salaries. The amount of the allowance is determined by a percentage of the employee’s fundamental salary and is dependent on the most recent Consumer Price Index for Industrial Workers (CPI-IW). The CPI-IW information is issued on a monthly basis by the Labor Bureau of the government.

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