Cabinet approves additional installment of DA, DR to Central government employees
Centre’s decision will impact the exchequer to the tune of Rs.6614.04 cr per annum
Hyderabad: The Union Cabinet chaired by Prime Minister Narendra Modi approved to release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2025 representing an increase of two per cent over the existing rate of 53 per cent of the basic pay and pension, to compensate against price rise.
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs. 6614.04 crore per annum. This will benefit about 48.66 lakh Central government employees and 66.55 lakhs pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.