New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved the release of an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2024, representing an increase of 4 per cent over the existing rate of 46 per cent of the basic pay/pension, to compensate against price rise.
This will benefit about 49.18 lakh Central government employees and 67.95 lakh pensioners, according to an official statement issued after the meeting.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 12,868.72 crore per annum.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
–IANS