Union Cabinet Approves DA, DR Hike For Govt Employees, Pensioners

The Dearness Allowance for central government employees and Dearness Relief for pensioners will be increased by four per cent starting from January 1, 2024, as approved by the Union Cabinet on Thursday.

The announcement was made ahead of the upcoming Lok Sabha elections, dates for which are expected to be declared around the middle of this month.

During a press conference regarding the cabinet's decisions, Piyush Goyal, the Minister of Commerce and Industry for the Union, stated that the government's resolution would have a positive impact on a combined total of 4.918 million employees and 6.795 million pensioners.

According to him, the exchequer would incur an annual cost of Rs 12,868.72 crore due to the decision. Prime Minister Narendra Modi presided over the cabinet meeting.

The increase in Dearness Allowance (DA) and Dearness Relief (DR) for pensioners amounts to a four per cent rise from the current rate of 46 percent of their basic pay/pension. This adjustment is intended to offset the effects of inflation.

The official statement mentioned that the rise is in line with the approved formula, which is determined by the suggestions of the Seventh Central Pay Commission.

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