Govt hikes DA, DR for central govt employees to 42% of basic pay

The Union Cabinet on Wednesday hiked dearness allowance (DA) and dearness relief (DR) for the central government employees by 4 percentage points to 42 per cent of basic pay.

The move will benefit about 4.8 million central government employees and 6.9 million pensioners. The decision will be effective from 1 January, 2023.

Briefing reporters, information and broadcasting minister Anurag Singh Thakur said the hike is based on the percentage increase of All India Consumer Price Index for industrial workers as well as the recommendations of the 7th Pay Commission.

“Every financial year, the financial burden will be Rs 12815 crore