In a press conference, I&B minister Anurag Thakur stated that the Union Cabinet decided on Friday to increase the Dearness Allowance for central government employees and pensioners by 4% to 42%.
"With effect from January 1, 2023, the Union Cabinet, led by Prime Minister Shri Narendra Modi, has approved the release of an additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners."
"To offset the price increase, the additional installment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension," stated a government press release.
About 47.58 million Central Government employees and 69.76 million pensioners will gain from this.
The Dearness Allowance is periodically increased by the central government to combat rising inflation. It is typically updated twice annually, in January and July. In most cases, the payout and the increase in DA are announced in March.
The DA for the focal government representatives is determined in light of the most recent Purchaser Value Record for Modern Specialists (CPI-IW). The CPI-IW data are released monthly by the Labour Bureau, a division of the Labour Ministry. The Dearness Allowance for pensioners and employees of the central government is calculated using a predetermined formula.
Currently, pensioners and employees of the central government receive a Dearness Relief of 38% and 38%, respectively. The final DA increase was announced by the central government on September 28, 2022. It was bring into force on July 1, 2022.
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