Approval for 4% Dearness Allowance Hike Expected in July 2023 – Cabinet Meeting Scheduled Today
The Cabinet meeting, scheduled for October 4, 2023, at 10:30 a.m., is poised to bring positive developments for central employees and pensioners. Media reports suggest that the Modi government is likely to grant approval for an increase in the dearness allowance during this meeting, just in time for the Navratri festival.
Central employees and pensioners have been eagerly awaiting a hike in the dearness allowance since July. The proposed increase would raise the dearness allowance from 42 percent to 46 percent, effective from July 1. As a result, it is expected that the October salary will include the approved dearness allowance increase. Furthermore, there is a possibility that the DA arrears for July, August, and September will be disbursed along with the October salary or in a supplementary payment.
This timely decision by the Central Government will provide relief to approximately 47 lakh employees and 68 lakh pensioners, alleviating their financial burdens amidst the current inflationary pressures. Additionally, with the Navratri festivities commencing on October 15 and Dussehra falling on October 24, this approval will enable them to celebrate these occasions with greater financial security.
The official release of the long-awaited announcement on the Expected Dearness Allowance (DA) from July 2023 has brought joy and relief to Central government employees, pensioners, and family pensioners across the country.
After the release of the AIPCIN statistical data for June 2023, the Dearness Allowance for July 2023 has been confirmed for Central government employees, pensioners, and family pensioners. Following the calculation methodology recommended by the 7th Pay Commission, the additional DA will increase by 4%, resulting in a total percentage hike of 46% for the Dearness Allowance.
Consequently, all Central government employees, pensioners, and family pensioners can expect a minimum monthly salary increase of Rs.720 and a pension increase of Rs.360. These regular salary and pension hikes aim to mitigate the impact of rising inflation and help individuals cope with the escalating prices of essential commodities.
The announcement regarding the new DA hike will be made once approval is obtained from the Union Cabinet. After approval from the Cabinet Committee on Dearness Allowance, the Finance Ministry will issue relevant orders to ensure the prompt disbursement of the DA payment to all current and retired employees of the Central Government.