New Delhi, March 7: In a recent development, the Union Cabinet, led by Prime Minister Shri Narendra Modi, has given its nod for an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, effective from January 1, 2024. This move entails a 4% increase over the existing rate of 46% of the Basic Pay/Pension, aimed at offsetting the impact of rising prices on the beneficiaries.
The decision is expected to have a combined financial implication of Rs.12,868.72 crore annually on the exchequer.
Around 49.18 lakh Central Govt employees and 67.95 lakh pensioners stand to benefit from this decision, which underscores the government’s commitment to addressing the economic concerns of its workforce and retirees.
It’s worth noting that this increment aligns with the prescribed formula based on the recommendations put forth by the 7th Central Pay Commission, ensuring fairness and consistency in the implementation of such adjustments.
This decision reflects the government’s proactive stance in mitigating the economic challenges faced by its employees and pensioners, providing them with some relief amidst the prevailing inflationary pressures.
