The Union Cabinet has granted a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, respectively. This augmentation, effective from July 1, 2023, raises the DA and DR to 46%. Approximately 48.67 lakh employees and 67.95 lakh pensioners will benefit, with an annual cost of Rs 12,857 crore to the central government.
For example, an employee with a Rs 18,000 basic salary will see a monthly increase of Rs 720. Similarly, a pensioner with a Rs 20,000 basic pension will receive an additional Rs 800 per month. These adjustments will be applicable from October, including arrears from July 2023. This move aims to counter the impact of rising prices on government employees and pensioners.