7th Pay Commission: The Union Government has increased the Dearness Allowance for Central govt employees and Dearness Relief for pensioners increased by 4%. The DA hike will be implemented from 1, July 2023 said Union Minister Anurag Thakur on Cabinet decisions. With this increase 4 percent hike, the dearness allowance will be increased from 42 percent to 46 percent. The decision will benefit 48.67 lakh central government employees and 67.95 lakh pensioners.
The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month.
The release of the additional instalment of dearness allowance and dearness relief will be applicable from July 01, 2023, Information & Broadcasting Minister Anurag Thakur told reporters after the meeting of the Union Cabinet.
This increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.
The Union Cabinet, chaired by the Prime Minister, Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023 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.
