16 Oct, 2024 09:57 PM

Cabinet approves 3% DA hike from July 2023.

The Union Cabinet has cleared a 3% hike in Dearness Allowance (DA) for Central Government employees on Wednesday (October 16, 2024), benefitting more than 1 crore employees and pensioners ahead of the Deepavali festive season this year.

The raise takes the DA now to 53% of the basic salary with effect from July 1, 2024.

“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 ₹9,448.35 crore per annum,” said the press release.

“This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners,” the release added.

The government had last hiked DA to Central Government employees and Dearness Relief (DR) to pensioners on March 8, 2024, with effect from January 1, 2024. The increase then was 4 percentage points over the rate of 46% of the basic pay/ pension, to compensate against price rise.

PIB Release is reproduced below

Cabinet

azadi ka amrit mahotsav

Cabinet approves additional instalment of three percent of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners

Posted On: 16 OCT 2024 3:20PM by PIB Delhi

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three percent (3%) over the existing rate of 50% of the Basic Pay/Pension, to compensate against price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7^th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum.

This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

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