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:
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The hike is an additional instalment with effect from 1-7-2023.
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The 4% is over the existing rate of 42% of Basic Pay/ Pension, to compensate against the price rise.
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Impact on exchequer- Rs. 12,857 crore per annum (DA and DR combined)
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It will benefit 48.67 lakh Central Government employees and 67.95 lakh pensioners.
