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The Union Cabinet on Wednesday (October 16, 2024) approved an additional tranche of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners to offset the price hike. The decision comes days before Deepavali.
The emoluments will come into effect on July 1 and represent a 3% increase over the existing rate of 50% of the basic salary/pension in order to adjust the cost of living and stem the erosion of the real value of wages. protect.
“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be ₹ 9,448.35 crore per annum,” a government statement said.
This will benefit around 49.18 lakh central government employees and 64.89 lakh pensioners, it added.
This is the second time this year that the two components have been revised, the first being on January 1.
The increase is based on the increase in the 12-month average of the All India Consumer Price Rise Index for Industrial Workers, published by the Labor Bureau.
Announcing the decision, Union Minister Ashwini Vaishnaw said, “The enhanced DA and DR will add to the paychecks of central government employees and pensioners. I would like to congratulate them as this is happening just before the festival of Deepavali.”
Chhattisgarh increases DA for state employees by 4%
Earlier in the day, the Chhattisgarh state government had also announced an increase in DA for state employees as Chief Minister Vishnu Deo Sai said the DA would be increased by 4%, taking it to 50% of basic salary.
Published – Oct 16, 2024 3:57 PM IST
