New Delhi: The Union Cabinet on Thursday approved a 4% hike in dearness allowance for Central Government employees from January 1, 2024, bringing the total to 50%. According to the government, this decision will benefit 50 lakh employees and 68 lakh pensioners. This will cost the government Rs 12,868 crore. Due to an increase in DA, the government has also approved additional benefits for House Rent Allowance.
The hike in dearness allowance is determined by the Central Government based on the Consumer Price Index (CPI) data for industrial workers. The CPI-IW data is published monthly by the Labour Bureau, under the Ministry of Labour. This calculation follows a specific formula applicable to both employees and pensioners of the Central Government. Notably, this formula applies exclusively to Central Government employees and pensioners receiving salaries based on the 7th Pay Commission’s recommendations.
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Thursday 09 Jan. 2025
The Cabinet meeting was chaired by Prime Minister Narendra Modi.
The additional instalment of Dearness Allowance (DA) and Dearness Relief (DR) to pensioners represents an increase of 4 percent over the existing rate of 46 per cent of the basic pay/pension to compensate against price rise.
