The Union Cabinet has approved an additional installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from 1st July 2024. This approval includes a 3% increase over the existing rate of 50% of basic pay/pension, compensating for the rise in prices. The increase follows the formula recommended by the 7th Central Pay Commission.
Key Highlights of DA/DR Increase:
- Effective Date: 1st July 2024
- Increase: 3% over the existing rate of 50% of basic pay/pension
- Reason for Increase: To compensate for price rises, as per the 7th Central Pay Commission’s accepted formula
- Financial Impact on Exchequer: Rs. 9,448.35 crore annually
- Beneficiaries:
- 49.18 lakh central government employees
- 64.89 lakh pensioners
This decision aims to provide relief to central government employees and pensioners by adjusting their DA and DR to reflect the current inflationary trends.
Key Data from the Announcement
| Aspect | Details |
|---|---|
| Date of Effect | 1st July 2024 |
| DA/DR Increase | 3% |
| Current Rate | 50% of basic pay/pension |
| Reason for Increase | Price rise compensation (7th Pay Commission) |
| Total Financial Impact | Rs. 9,448.35 crore per annum |
| Number of Employees Benefited | 49.18 lakh |
| Number of Pensioners Benefited | 64.89 lakh |
This increase in DA and DR is part of the government’s continued effort to support central government employees and pensioners amid inflationary pressures.
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