The Union Cabinet authorized an additional installment of dearness allowance (DA) for Central Government employees and dearness relief (DR) for pensioners on Wednesday, resulting in a 3 percent raise.
At a meeting chaired by Prime Minister Narendra Modi, the Cabinet agreed on a 3 percent increase above the present rate of 31% of basic wage or pension with effect from January 1 to “compensate for price rises,” according to a government statement.
DA was raised in compliance with the approved formula of the 7th Central Pay Commission
“This rise is in compliance with the approved formula, which is based on the 7th Central Pay Commission’s recommendations.” The cumulative impact of both DA and DR on the exchequer would be $9,544.50 crores per year. According to the government, this will benefit roughly 47.68 lakh Union government employees and 68.62 lakh retirees.