The dearness allowance (DA) for government employees and retirees has been increased by the federal government by four percentage points, from the previous 38 percent to 42 percent.
The choice was made during the Union Cabinet meeting on Friday, which was presided over by Prime Minister Narendra Modi. The updated rate will be taken into consideration starting in January 2023.
The combined effect of the dearness allowance and the dearness relief on the exchequer will be Rs 12,815.60 crore annually.
About 47.58 lakh central government employees and 69.76 lakh pensioners will profit from this.
The recognized formula, which is based on the recommendations of the 7th Central Pay Commission, was used to determine this rise.
In September of last year, when the dearness allowance was raised from 34 to 38 percent, the government announced the most recent increase.
Dearness The federal government offers its employees a stipend to help them cope with inflation-like circumstances.
Pensioners receive the same level of dearness relief that central government employees do.
