Cabinet clears 4% dearness allowance hike for central govt employees

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

This increase is in accordance with 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 will benefit about 48.67 lakh central government employees and 67.95 lakh pensioners.

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