The central government has hiked the dearness allowance (DA) for government staffers and pensioners by four percentage points to 42 per cent from the existing 38 per cent.
The decision was taken at the meeting of the Union Cabinet led by Prime Minister Narendra Modi on Friday. The revised rate will be considered with effect from January 2023. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs 12,815.60 crore per annum.
This will benefit about 47.58 lakh central government employees and 69.76 lakh pensioners.
This increase is in accordance with the accepted formula which is based on the recommendations of the 7th Central Pay Commission.
The government announced the last hike in dearness allowance in September last year when the DA was hiked from 34 to 38 per cent.
