On Thursday, the Union Cabinet gave its nod to a rise in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, increasing it by four percent effective from January 1, 2024.
This decision arrives amidst the anticipation of the forthcoming Lok Sabha elections, expected to be announced by mid-month.
During the media briefing regarding the cabinet's resolutions, Union Minister of Commerce and Industry, Piyush Goyal, highlighted that approximately 49.18 lakh employees and 67.95 lakh pensioners will reap the benefits of this governmental initiative.
The implementation of this decision is projected to incur an annual expenditure of Rs 12,868.72 crore to the exchequer.
Prime Minister Narendra Modi chaired the cabinet meeting where this decision was endorsed.
The augmentation in Dearness Allowance (DA) and Dearness Relief (DR) for pensioners signifies a four percent increase from the current rate of 46 percent of the basic pay/pension, aimed at mitigating the impact of inflation.
According to an official statement, this elevation adheres to the established formula based on the recommendations of the Seventh Central Pay Commission
