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Wednesday, October 18, 2023

Cabinet hikes dearness allowance (DA) by 4 percentage points to 46% for central govt employees

 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.

This increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.

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.

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