7th Pay Commission big update: 4 percent DA hike approved for central government employees
The Union Cabinet has cleared the next round of DA hike for central government employees.
7th Pay Commission latest news: The Centre on Friday cleared the next round of Dearness Allowance (DA) hike for central government employees. The cabinet cleared the first DA hike of 2023 which will now take the figure to 42 percent for central employees.
The decision came after a Union Cabinet meeting today (March 24) which was chaired by Prime Minister Narendra Modi. The existing DA rate was 38 percent. The hike will be effective from January 1, 2023 for central government employees. Pensioners will also benefit from the 4 percent hike in their Dearness Relief (DR).
“The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today has given its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023. The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise,” the official notification said.
The hike will benefit around 47.58 lakh central government employees and 69.76 lakh pensioners. The combined impact of the DA and DR on the exchequer would be Rs.12,815.60 crore per annum, the notification added.
“This increase is in accordance with the accepted formula which is based on the recommendations of the 7th Central Pay Commission,” the notification said.