New Delhi: There is good news for Union government employees.
The Centre has raised dearness allowance (DA) by 4%, taking the total to 42%.
The hike in DA, to be applied retrospectively from January 1, 2023, will benefit over 1 crore employees and pensioners.
The Centre will spend Rs 12,815 crore to fund the hike in DA, said Union Minister Anurag Thakur.
DA is given to government employees and dearness relief to pensioners to compensate for inflation and rise in prices. The calculation is based on the latest consumer price index for industrial workers (CPI-IW).
“This will benefit about 47.58 lakh Central government employees and 69.76 lakh pensioners. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” the government said in a statement.
The Centre last revised DA in September 2022, effective retrospectively from July 1, 2022 – also by 4%.
