Centre hikes DA by 4 per cent for central govt employees

New Delhi, March 24

The government on Friday announced that it has decided to hike the Dearness Allowance (DA) to its employees and Dearness Relief (DR) to its pensioners by 4 per cent to 42 per cent.

Briefing the media, Information and Broadcasting Minister Anurag Thakur said, “The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval to release an additional installment of DA to Central Governments employees and DR to Pensioners with effect from January 1, 2023.”

The Minister said the additional installment would represent an increase of 4 per cent over the existing rate of 38 per cent of the Basic Pay/Pension, to compensate against price rise.

The combined impact on the exchequer on account of both the DA and the DR would be Rs 12,815.60 crore per annum, the Minister said.

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

This will benefit about 47.58 lakh Central Government’s employees and 69.76 lakh pensioners.