The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has granted approval for an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from 1st July 2023. This increase, amounting to 4%, raises the existing rate of 42% of the Basic Pay/Pension and aims to offset the impact of rising prices. The adjustment adheres to the recommended formula based on the 7th Central Pay Commission.
The cumulative financial implication on the government’s treasury, resulting from the increment in both Dearness Allowance and Dearness Relief, stands at Rs. 12,857 crore annually. This development will directly benefit approximately 48.67 lakh Central Government employees and 67.95 lakh pensioners across the country.