Ahead of crucial general elections, the Union Cabinet is likely to approve a 4 percent dearness allowance (DA) for central government employees today, sources told Business Today TV. In October last year, the Cabinet increased the dearness allowance and dearness relief by 4 percentage points to 46 percent to benefit 48.67 lakh central government employees and 67.95 lakh pensioners.
The release of the additional installment of dearness allowance and dearness relief was applicable from July 01, 2023, Information & Broadcasting Minister Anurag Thakur told reporters after the meeting of the Union Cabinet. This increase was in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.
With today’s 4 percent hike, the DA will reach 50 percent. As per the recommendations of the 7th Pay Commission, if the DA reaches 50 percent, there will also be a hike in the house rent allowance, children’s education allowance, transport allowance, etc. With these hikes, the central government staff’s take-home pay package is likely to increase significantly.
The article originally appeared on Business Today.