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

Women’s U19 T20 World Cup 2027 to Begin on January 21 in Bangladesh and Nepal

The ICC U19 Women’s T20 World Cup 2027 is set to commence on January 21,…

16 hours ago

World Iodine Deficiency Day 2026: Causes, Symptoms, Prevention and India’s NIDDCP

Iodine Deficiency Day or World Iodine Deficiency Disorders Prevention Day is celebrated on October 21…

17 hours ago

Nigeria Reports Imported Case of Ebola Bundibugyo Virus Disease

There is an imported case of the Bundibugyo strain of the Ebola virus in the…

17 hours ago

DCGI Approves Zytorvi (Toripalimab) for Advanced Esophageal Cancer

On October 21, 2026, the Drugs Controller General of India (DCGI) approved Zytorvi (toripalimab) in…

18 hours ago

Ipsos Quality of Care Perception Index 2026: Malaysia Ranks First, India Third

India was ranked third in the Ipsos Quality of Care Perception Index 2026 after Malaysia…

19 hours ago

Jamnagar Refinery: Why India’s Oil Hub Matters to the World

Jamnagar is a coastal city in the state of the Gujarat and it is emerging…

19 hours ago