Union Cabinet approves 4% dearness allowance hike for central govt staff

The Union Cabinet has given its approval for a 4% increase in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners, as announced by Union Minister Anurag Thakur.

This move will raise the DA and DR from the current 42% to 46%. The 4% increased allowances will be effective from July 1, 2023, as confirmed by the Information & Broadcasting Minister during a press briefing following the Union Cabinet meeting.

The decision to implement this hike aligns with the recommendations of the 7th Central Pay Commission. The combined financial impact of the increased DR and DA is estimated to be around Rs. 12,857 crore annually, benefiting about 48.67 lakh central government employees and 67.95 lakh pensioners.

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Additionally, the government has also raised the Minimum Support Price (MSP) for wheat by Rs. 150 per quintal, setting it at Rs. 2,275 per quintal for the 2023-24 period. Moreover, Diwali bonuses have been sanctioned for Group C and non-gazetted Group B level officials, including paramilitary forces.

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