The Cabinet approves a 4% increase in DA for central government employees

PIB : Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 01.07.2023

7th Pay Commission: With 4 percent increase, dearness allowance will increase from 42 percent to 46 percent. This decision will benefit 48 lakh central government employees and 68 lakh pensioners.



On Wednesday, the Union Cabinet approved a four percent increase in Dearness Allowance (DA) and Dearness Relief for pensioners. Information and Broadcasting Minister Anurag Thakur told reporters that the decision of the union cabinet will take effect on July 1.

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment 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 against price rise. 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 Dearness Allowance and Dearness Relief would be Rs.12,857 crore per annum. This will benefit about 48.67 lakh Central Government employees and 67.95 lakh pensioners.

Source: PIB

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