The Union Cabinet, chaired by the 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 percent (3%) over the existing rate of 50% of the Basic Pay/Pension, to compensate against price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7^th 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.

Dearness Allowance increase approved to raise compensation for central employees and pensioners, effective from July, under pay commission formula. An additional instalment of Dearness Allowance and Dearness Relief, increasing the existing rate by three percentage points, is approved effective 1 July 2024 for Central Government employees and pensioners, applied under the formula based on the 7th Central Pay Commission and entailing an estimated recurring fiscal impact and specified beneficiary populations.