Union Cabinet Approves 4% Increase in DA For Government Employees

The Dearness Allowance (DA) for government employees would increase by 4%, from 38% to 42%, Union Minister Anurag Thakur stated on Friday. According to the minister, the Center has authorized the expenditure of Rs 12,815 crore to achieve the increase.

The discharge was agreed upon by the Cabinet on Friday and is effective as of January 1, 2023, for both retirees and staff members of the Central Government. Both 69.76 lakh pensioners and 47.58 lakh employees are expected to gain from this decision.

Both 69.76 lakh pensioners and 47.58 lakh employees are expected to gain from this decision. In addition to raising the Dearness Allowance, the Cabinet agreed on Saturday to an MSP (Minimum Support Price) for raw jute of Rs 5,050 per metric ton for the 2023–24 period.

This rise follows the approved formula, which was developed based on the suggestions made by the 7th National Pay Commission. Twice a year, between January and July, the DR and DA are amended. While retirees receive dearness relief, government employees receive a dearness allowance.