Cabinet Committee Approves 4% DA to CG Employees and Pensioners with effect from 1st July 2023

Cabinet approves release of an additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.07.2023

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has given its approval to release an additional installment 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 for the price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

Current DA is 46%

The release of an additional instalment of Dearness Allowance (DA) and Dearness Relief (DR) due from 01.07.2023 has been approved by the Cabinet. This decision, made under the leadership of Prime Minister Shri Narendra Modi, will benefit a total of 48.67 lakh Central Government employees and 67.95 lakh pensioners. The increase in DA and DR represents a 4% rise over the current rate of 42% of the Basic Pay/Pension, aimed at offsetting the effects of price inflation. This increase adheres to the established formula, which is based on the recommendations of the 7th Central Pay Commission. As a result, the exchequer will witness a combined impact of Rs.12,857 crore per annum. Overall, this initiative will provide significant financial relief to a substantial number of government employees and pensioners.