Cabinet approves 3% dearness allowance hike for central govt employees

Mootv Odisha Web Desk :

This additional instalment of DA over the existing rate of 50% of the Basic Pay/Pension is to compensate against price rise, the government said in a statement. Ahead of Diwali, the Union Cabinet chaired by Prime Minister Narendra Modi, has approved a three per cent hike in dearness allowance (DA) for central government employees and dearness relief for pensioners.

This additional instalment of DA over the existing rate of 50% of the Basic Pay/Pension is to compensate against price rise, the government said in a statement.

The benefit will come into effect from July 1, 2024, and will cost the exchequer Rs.9,448.35 crore per annum. The move will benefit 49.18 lakh central government employees and 64.89 lakh pensioners.

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