Today's cabinet meeting likely to hike Dearness Allowance to 46%

Anticipated Approval for Dearness Allowance Hike in July 2023

As per credible sources, the Modi government is poised to bestow a significant pre-Navratri gift upon central employees and pensioners on October 4, 2023. The cabinet, under the leadership of Prime Minister Narendra Modi, is set to convene and is expected to grant approval for an increase in the dearness allowance for central employees and pensioners.

Expected Approval for Dearness Allowance Increment
On October 4, 2023, the Union Cabinet and the Economic Affairs Committee of the Cabinet are scheduled to meet at 10:30 a.m. During this cabinet meeting, it is highly likely that the Modi government will raise the dearness allowance for central employees and pensioners. This decision holds paramount importance, as the Election Commission might announce the dates for assembly elections in five states at any given moment. Once the election dates are declared, the imposition of the code of conduct would make such a decision considerably challenging for the government.

A Potential 4% Rise in the 7th Pay Commission's Dearness Allowance
Central employees and pensioners have eagerly awaited an increase in the dearness allowance since July. The central government is contemplating raising the dearness allowance from 42 per cent to 46 percent, effective from July 1. Consequently, the salary for October is expected to include the increased dearness allowance and arrears for the period spanning July to September may also be disbursed to central employees along with the October salary.

A Timely Gesture Ahead of Navratri!
The Navratri festival is set to commence on October 15, with Dussehra falling on October 24. Moreover, the Election Commission is poised to announce assembly election dates imminently. As such, it is anticipated that the decision to augment the dearness allowance for central employees and pensioners will be made on Wednesday. This move by the Central Government will bring relief to 47 lakh employees and 68 lakh pensioners, alleviating the impact of soaring inflation.