New Delhi, October 18, 2023 : The Central government on Wednesday hiked the Dearness Allowance for its 117 lakh employees and pensioners by 4% ahead of the festival season, a minister said, a move that would cost the exchequer 12,857 crore rupees annually.
The Dearness Allowance (DA) — a part of monthly wages and pensions provided to cushion against rises in the cost of living — was effective beginning July 1, 2023, the Information and Broadcasting Minister Anurag Thakur said on Wednesday.
Anurag Thakur told reporters after the meeting of the Union Cabinet that the DA for central government employees and Central pensioners has been hiked to 46 per cent from 42 per cent.
The Central and state governments generally announce twice-a-year adjustments in inflation-linked Dearness Allowance (DA). The first is given from January to June, while the second comes from July to December.
The hike, effective from July 1, 2023, will lead to enhanced salaries and pension for the month of November, along with arrears for the period from July to October.
The hike will benefit about 49 lakh Central government employees and 68 lakh Central pensioners, said a statement issued by the government.
For those with a minimum basic salary of Rs 18,000, the current 42 per cent DA provides a monthly increase of Rs 7,560. Following the increase to 46 per cent, the monthly salary will increase to Rs 8,280.
