New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional installment of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners.
With effect from 1 January, the revision will raise the current rate of basic pay and pension from 53 per cent to 55 per cent by increasing DA and DR by two per cent. The purpose of this decision is to lessen the effects of inflation and give government workers and retirees financial relief.
This increase is in accordance with the recommendations of the 7th Central Pay Commission and follows the established formula for DA and DR revisions.
The move will benefit approximately 48.66 lakh central government employees and 66.55 lakh pensioners, ensuring that their earnings maintain their real value amidst rising prices and inflationary trends.
This revision is expected to have an annual financial impact of Rs 6,614.04 crore. With arrears due on 1 January this year, the updated DA and DR will be included in the next salary and pension payments.
To protect the financial stability of workers and retirees, the government periodically modifies DA and DR in response to inflationary trends and changes in the cost of living index.
The government’s decision to address the financial worries of its employees and retirees is demonstrated by its decision to raise DA and DR. This revision is anticipated to offer some relief from the impact of inflation on household budgets, especially for individuals who rely on fixed incomes.
The announcement comes as part of the government’s efforts to support its employees and pensioners by adjusting their financial benefits in response to changing economic conditions.
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