Cabinet clears 4% dearness allowance hike for Central Government employees

New Delhi, Oct 18: The Union Cabinet Wednesday approved the release of an additional installment of Dearness Allowance (DA) to the central government employees and Dearness Relief (DR) to pensioners from July 1, 2023, onwards, representing an increase of 4 percent over the existing rate of 42 percent of the basic pay and pension, to compensate against price rise.

This increase is following the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The combined impact on the exchequer on account of both DA and DR would be Rs 12,857 crore per annum.

This would benefit about 48.67 lakh central government employees and 67.95 lakh pensioners.