Cabinet Greenlights 4% Increase In DA; Benefits 49 Lakh Govt Employees, 67.95 Lakh Pensioners
The Union Cabinet approved a four per cent hike in Dearness Allowance for central government employees and Dearness Relief for pensioners, effective from 1 January 2024. The decision, announced by Union Commerce and Industry Minister Piyush Goyal during a media briefing on Thursday, is expected to benefit 49.18 lakh employees and 67.95 lakh pensioners. The increase will cost the exchequer Rs 12,868.72 crore annually.
The decision precedes the upcoming Lok Sabha elections, anticipated to be announced by mid-month.
Prime Minister Narendra Modi chaired the cabinet meeting where the decision was made.
The additional instalment of Dearness Allowance and Dearness Relief represents a four per cent increase over the existing rate of 46 per cent of the basic pay/pension, aiming to offset the impact of price rise. The increase follows the accepted formula based on the recommendations of the Seventh Central Pay Commission, according to an official release.
