Ahead Of Diwali, Government Hikes DA, DR By 3 Per Cent: Over 49 Lakh Central Employees, 64 Lakh Pensioners To Benefit

The Central government has announced a 3 per cent increase in the dearness allowance (DA) and dearness relief (DR) for over 1.1 crore employees and pensioners to compensate them against price rise.

This raises the total DA and DR from 50 per cent to 53 per cent, which will be paid in addition to the basic pay.

The decision was made during a cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday (16 October).

The revised DA and DR rates will take effect from 1 July 2024.

Announced just weeks before Diwali, the move brings welcome relief for central government employees as they prepare for the festive season.

"This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," the government said in a statement.

The hike in DA and DR will cost the exchequer an additional Rs 9,448.35 crore every year, according to the government.

The government said that this move will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners are revised twice a year to compensate for inflation. These revisions are based on the latest Consumer Price Index for industrial workers.

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