Cabinet Approves additional instalment of DA to 49.18 lakh Government Employees and DR to 64.89 lakh Pensioners

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three percent (3%) over the existing rate of 50% of the Basic Pay/Pension, to compensate against price rise.

Click Here to Join Our WhatsApp Group

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum.

This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

The DA/DR adjustments, made twice a year on January 1 and July 1, are calculated based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), published by the Labour Bureau.

With the hike effective from July, employees will receive arrears for July, August, and September along with their revised payments. The revisions aim to protect against the erosion of real pay due to inflation.