7th Pay Commission: With this decision, the DA for central government employees will increase to 46 per cent from the existing 42 per cent.
7th Pay Commission: The Union Government has increased the Dearness Allowance for Central govt employees and Dearness Relief for pensioners increased by 4%. The DA hike will be implemented from 1, July 2023 said Union Minister Anurag Thakur on Cabinet decisions. With this increase 4 percent hike, the dearness allowance will be increased from 42 percent to 46 percent. The decision will benefit 48.67 lakh central government employees and 67.95 lakh pensioners.
The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month.
The release of the additional instalment of dearness allowance and dearness relief will be applicable from July 01, 2023, Information & Broadcasting Minister Anurag Thakur told reporters after the meeting of the Union Cabinet.
The release of the additional instalment of dearness allowance and dearness relief will be applicable from July 01, 2023, Information & Broadcasting Minister Anurag Thakur told reporters after the meeting of the Union Cabinet.
This increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.
The Union Cabinet, chaired by the Prime Minister, Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023 representing an increase of 4% over the existing rate of 42% of the Basic Pay/Pension, to compensate against price rise. 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 Dearness Allowance and Dearness Relief would be Rs.12,857 crore per annum. This will benefit about 48.67 lakh Central Government employees and 67.95 lakh pensioners.
Earlier, Diwali bonuses for Group C and non-gazetted Group B level officials, including paramilitary forces, was approved by the government. For 2022–2023, the finance ministry has set a limit of ₹7,000 for the calculation of non–productivity linked bonuses (ad hoc bonuses) for central government employees.
As per the memorandum, the Department of Expenditure under the finance ministry said a non-productivity linked bonus (ad-hoc bonus) equivalent to 30 days emoluments for the accounting year 2022-23 has been granted to the central government employees in Group ‘C’ and all non-gazetted employees in Group B’, who are not covered by any productivity-linked bonus scheme.
Festive cheer for government employees
The long-awaited decision comes during the ongoing festive season and is being touted as a ‘Diwali gift’ for lakhs of central government employees and pensioners.
The decision will have a positive impact on 48.67 lakh central government employees and 67.95 lakh pensioners.
This is because central government employees will get enhanced salaries from the month of November along with arrears for the period between July and October.
What is DA and DR?
The DA functions as a cost-of-living adjustment allowance extended to the government’s committed workforce.
In a parallel capacity, Dearness Relief (DR) serves central government pensioners, offering the means to manage the escalating cost of living. The government revises the rates of DA and DR every six months.
