Cabinet Nod: Central Government Employees to Receive 4% Hike in Dearness Allowance

Cabinet approves additional instalment of Dearness Allowance and Dearness Relief to Central Government employees and pensioners

49.18 lakh employees and 67.95 lakh pensioners to benefit 4% benefit to cost Rs.12,868.72 crore per annum to exchequer

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2024 representing an increase of 4% over the existing rate of 46% of the Basic Pay/Pension, to compensate against price rise.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,868.72 crore per annum. This will benefit about 49.18 lakh Central Government employees and 67.95 lakh pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.