New Delhi, Oct 18: The Union Cabinet, chaired by Prime Minister Narendra Modi has approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with retrospective effect from 1 July 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.
