Union Cabinet Approves Release Of DA, DR Additional Installment

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved releasing an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023. This decision reflects an increase of 4% over the existing rate of 42% of the Basic Pay/Pension to compensate for the price rise. This increase is under the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer for Dearness Allowance and Dearness Relief would be Rs.12,857 crore per annum. 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