Union Cabinet Approves 3% Hike in Dearness Allowance for Central Government Employees and Pensioners.

New Delhi:

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners yesterday, effective from July 1, 2024. This increase of 3% raises the total DA to 53% of the Basic Pay/Pension, aimed at offsetting the rising cost of living.

The decision aligns with the formula established by the 7th Central Pay Commission and is expected to have a significant financial impact, costing the exchequer approximately Rs. 9,448.35 crore annually.

The increase will benefit around 49.18 lakh central government employees and 64.89 lakh pensioners, providing much-needed relief amid inflationary pressures.