Release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023 representing an increase of 4% over the existing rate of 42% of the Basic Pay/Pension

DA Increase 4% to Central Government employees and pensioners from 01.07.2023

Existing DA 42% + Additional DA 4% = Increase in DA 46%

Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 01.07.2023

48.67 lakh Central Government Employees and 67.95 lakh pensioners to benefit

Posted On: 18 OCT 2023 3:24PM by PIB Delhi

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023 representing an increase of 4% over the existing rate of 42% 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 7th Central Pay Commission.

4% DA Hike to Central Government Employees – Today Latest News – DA Hike Calculation

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,857 crore per annum. This will benefit about 48.67 lakh Central Government employees and 67.95 lakh pensioners.

PIB

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It is expected that the Union Cabinet would approve increasing the Dearness Allowance (DA) by 4% starting in July 2023. The Cabinet Committee on Economic Affairs generally approves this permission in the second week of September based on the average AICPIN for Industrial Workers over the previous 12 months.

4% Increase in Dearness Allowance from July 2023

With the expected hike, the current DA rate of 42% will rise to 46% as of July 1st, 2023. Given the rising cost of living, this increase in DA provides to help the central government employees and pensioners.

The All India Consumer Price Index for Industrial Workers (AICPIN) average for the time period ranging July of the previous year to June of the current year is taken into account by the DA calculation. The calculation has shown that for DA to remain equal to the cost of living, a rise of 4% is required.

This week’s next cabinet meeting is when the Indian government is anticipated to approve the DA increase. When granted, the higher DA will help millions of government employees and pensioners nationwide.

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