New Delhi: The Union Cabinet has cleared a 3% hike in Dearness Allowance (DA) for Central Government employees on Wednesday, benefitting more than one crore employees and pensioners ahead of the Diwali 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 Rs.9,448.35 crore per annum,” said a 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.
In March, Odisha Government had increased dearness allowance and relief by 4%, raising it to 50% for State government employees and pensioners, benefiting 4.5 lakh employees and 3.5 lakh pensioners.
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