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Cabinet Approves 3% DA Hike for Central Govt Employees, Pensioners
The Union Cabinet, chaired by Prime Minister Narendra Modi, has announced a 3% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners. This hike is effective from July 1, 2024, raising the existing DA and DR rate from 50% to 53% of the Basic Pay or Pension.
Dearness Allowance Boost for Central Employees
The adjustment in DA and DR aims to help central government employees and pensioners offset the rising cost of living. The increase follows the recommendations of the 7th Central Pay Commission, utilizing a well-established formula that ensures fair compensation for inflation.
Impact on Government Expenditure
This hike is set to benefit approximately 49.18 lakh central government employees and around 64.89 lakh pensioners across the country. The combined financial impact on the government due to this increase in DA and DR is estimated to be Rs. 9,448.35 crore per annum. This expenditure reflects the government’s commitment to supporting its employees and retirees in the face of economic challenges.
The hike in DA and DR is expected to provide much-needed financial relief to beneficiaries, ensuring that their purchasing power remains stable amid inflationary pressures. This adjustment aligns with the government’s policy to regularly review and adjust allowances, thereby offering consistent support to its workforce.
