4% hike DA and DR

On 18-10-2023, the Union Cabinet has approved a 4% hike in Dearness Allowance (‘DA’) for Central Government employees and Dearness Relief (‘DR’) for pensioners.

Key Points:

  1. The hike is an additional instalment with effect from 1-7-2023.

  2. The 4% is over the existing rate of 42% of Basic Pay/ Pension, to compensate against the price rise.

  3. Impact on exchequer- Rs. 12,857 crore per annum (DA and DR combined)

  4. It will benefit 48.67 lakh Central Government employees and 67.95 lakh pensioners.

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