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The finance ministry on Monday issued the office memorandum to implement the Cabinet decision to hike dearness allowance (DA) for central government employees to 42 per cent from January 1, 2023. Last week, the Union Cabinet had approved an 11 percentage point hike in DA and dearness relief (DR) for central government employees and pensioners with effect from July 1, benefitting more than 48 lakh central government employees, and 65 lakh pensioners.
No. 1/1/2023-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated the 3rd April, 2023.
The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/3/2022-E-II(B) dated 3™ October, 2022 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 38% to 42% of the Basic Pay with effect from 1st January, 2023.
2. The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50. paise may be ignored.
5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways respectively.
6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
(B. K. Manthan)
Deputy Secretary to the Government of India