New Delhi: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three per cent (3%) over the existing rate of 50% of the Basic Pay/Pension, to compensate against the price rise.
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 Rs.9,448.35 crore per annum.
This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.