Centre approves 4% hike in DA for central govt employees

The Union Government recently took a significant step to benefit Central government employees and pensioners by increasing the Dearness Allowance (DA) and Dearness Relief (DR) by 4%. This increase will be effective from July 1, 2023.

Increase in Dearness Allowance and Relief

  • Union Minister Anurag Thakur announced a 4% increase in Dearness Allowance and Dearness Relief.
  • The DA will go up from 42% to 46%.
  • This decision benefits a large number of people, including 48.67 lakh central government employees and 67.95 lakh pensioners.

Determining Dearness Allowance

  • The dearness allowance for employees and pensioners is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), published monthly by the Labour Bureau.
  • The release of the additional installment of DA and DR will be applicable from July 1, 2023.

Cabinet Approval

  • The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the release of this additional installment of DA and DR, aligning with the recommendations of the 7th Central Pay Commission.
  • This 4% increase aims to compensate for the rising prices and inflation.

Financial Implications

  • The combined impact on the government’s finances, due to both Dearness Allowance and Dearness Relief, is estimated to be Rs. 12,857 crore per year.
  • This increase will directly benefit around 48.67 lakh Central Government employees and 67.95 lakh pensioners.

Diwali Bonuses and Ad-Hoc Bonuses

  • Additionally, the government approved Diwali bonuses for Group C and non-gazetted Group B level officials, including paramilitary forces.
  • The finance ministry set a limit of ₹7,000 for non-productivity linked bonuses (ad hoc bonuses) for central government employees for the year 2022–2023.

Bonus for Non-Productivity Linked Employees

  • The Department of Expenditure, under the finance ministry, granted a non-productivity linked bonus (ad-hoc bonus) equivalent to 30 days’ emoluments for the accounting year 2022-23.
  • This bonus extends to central government employees in Group ‘C’ and all non-gazetted employees in Group ‘B,’ who are not covered by any productivity-linked bonus scheme.

Find More News on Economy Here

 

 

Piyush Shukla

Recent Posts

Which Animal of the World has the Largest and the Heaviest Brain?

Did you know that some animals have brains so large that they can weigh several…

9 hours ago

Which Movies Have won the Most Oscars of All Time?

Did you know that some movies have made history by winning an extraordinary number of…

10 hours ago

Kusunpur to Become Odisha’s First Smart Village

Kusunpur village in Kendrapada district of the Odisha is set to become the first smart…

10 hours ago

Uniqlo Appoints Jasprit Bumrah as Brand Ambassador for India

Global clothing retailer Uniqlo has appointed the Indian fast bowler Jasprit Bumrah as its brand…

11 hours ago

Indian Animated Film CHYIMI Wins Best Director Award at NYSAF 2026

Indian animation film gained international recognition. This come after the animated short film CHYIMI won…

11 hours ago

India Begins Trade Pact Talks with Philippines and Maldives: New FTAs and PTA in Focus

India has started orocess signing Terms of Reference (ToR) with the Philippines and Maldives to…

11 hours ago