The government approved a 3% increase in the dearness allowance (DA) for central government employees and retirees on Wednesday. Prime Minister Narendra Modi presided over a meeting of the cabinet committee on economic matters that took the decision.
The government’s announcement will benefit more than one crore central employees and retirees.
According to the government announcement, this equates to a 3% increase above the current rate of 31% of basic pay to compensate for the price increase.
The phrase basic pay, according to the Ministry of Finance’s Department of Expenditure, refers to the salary drawn under the 7th pay commission and does not include any other pay.
This year’s additional instalment will be effective from January 1st. The increase is in conformity with the approved formula based on the 7th Central Pay Commission’s recommendations. The total annual spending to the state budget will be Rs.9,544.50 crore. The new dearness allowance boost will benefit 47.68 lakh central government employees and 68.62 lakh retirees, according to the government.
The increase in the dearness allowance has come as a welcome relief to individuals who have been hit hard by rising gasoline and diesel prices.
