Bonus for government employees: Centre hikes DA by 4%
The Union Cabinet has approved a 4% increase in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners. This timely decision brings much-needed relief to countless people just in time for the festive season. The hike, effective from July 1, 2023, will raise the DA from the current 42% to 46%. Central government employees can expect enhanced salaries starting in November, along with arrears for the period between July and October.
Hike decision aligned with recommendations of the 7th Pay Commission
This latest move is set to offer financial relief during the festive season. The increase in DA and DR will not only boost purchasing power but also contribute to the overall economy. This decision aligns with the recommendations of the 7th Pay Commission, which aims to ensure fair compensation for government employees in relation to the cost of living.
Over 1 crore people to be impacted
The DA for employees and pensioners is calculated on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW). It is released by the Labour Bureau every month. The bureau is a department of the Union Labour Ministry. The Centre's latest move will benefit more than one crore people across the country.
