Cabinet clears additional DA instalment for Central govt employees, DR for pensioners

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved release of an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2025 representing an increase of 2 per cent over the existing rate of 53 per cent of the Basic Pay/Pension, to compensate against price rise.

The combined impact on the exchequer on account of the increase in both Dearness Allowance and Dearness Relief would be Rs 6,614.04 crore per annum.

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The increase will benefit about 48.66 lakh Central government employees and 66.55 lakh pensioners.

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