Centre hikes dearness allowance by 4 per cent for central govt workers and pensioners

On 18th October (Wednesday), the Union Cabinet authorized a 4% hike in Dearness Allowance (DA) for Central authorities workers and Dearness Relief for pensioners. With this, the DA/DR has been elevated to 46% from the present 42%. While briefing reporters concerning the choices taken by the Union Cabinet, Information and Broadcasting Minister Anurag Thakur advised media that the discharge of the extra instalment of dearness allowance and dearness reduction will likely be relevant from 1st July, this yr.

During this season of festivities, the Central Government has taken the cabinet choice to extend the DA (Dearness Allowance) of Government officers and the Dearness Relief to pensioners by 4% from July 1, 2023

– Union Minister @ianuragthakur #CabinetSelections pic.twitter.com/eJUXRWCVMC

— PIB India (@PIB_India) October 18, 2023

(Image Source – PIB)

During the briefing, Thakur mentioned, “Dearness Allowance for Central government employees and Dearness Relief for pensioners has been increased by 4 per cent. The DA hike will be implemented from 1, July 2023.” 

The announcement comes within the festive season and is being hailed as a Diwali reward from the federal government. As a results of this Cabinet choice, central authorities workers will get elevated salaries ranging from November, along with arrears for the interval between July and October.

The Union Minister Anurag Thakur acknowledged that the choice has come in the course of the pageant season and can profit each the central authorities workers and pensioners. Around 48.67 lakh Central Government Employees and 67.95 lakh pensioners will get profit from this Cabinet choice. It would price Rs 12,857 crore yearly to the Union authorities. 

The further month-to-month earnings for Central authorities workers with a minimal primary wage of Rs 18,000 will rise from Rs 7,560 (at a 42% price) to Rs 8,280 (at a 46% price). Likewise, for workers with a most primary wage of Rs 56,900, their month-to-month earnings will improve from Rs 23,898 (at a 42% price) to Rs 26,174 (at a 46% price).

Notably, the federal government pays Dearness Allowance/Relief to its workers (DA) and pensioners (DR) to offset the impression of inflation. Taking inflation into consideration, the federal government revises the charges of DA and DR each six months.

This announcement comes a day after, the Union authorities on seventeenth October (Tuesday) authorized ad-hoc (Non-productivity linked) bonuses for Group C and non-gazetted Group B rank central authorities officers, together with paramilitary forces and armed forces. This is equal to 30 days of emoluments for the accounting yr 2022-23.

In a notification, the Ministry of Finance acknowledged, “The calculation ceiling for payment of ad-hoc bonus under these orders shall be monthly emoluments of ₹7,000/”.

Centre proclaims Non-productivity linked ad-hoc #bonus to Central Govt workers: pic.twitter.com/fhTglnBDlR

— All India Radio News (@airnewsalerts) October 17, 2023

To be eligible for the bonus, a authorities worker will need to have been in service as of thirty first March 2023, and have labored repeatedly for not less than six months in the course of the fiscal yr. Employees who meet these standards will obtain a pro-rata fee primarily based on their period of steady service all year long.