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The Union Cabinet on Wednesday (October 16, 2024) approved an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners to compensate price rise. The decision comes days before Deepavali.
The emoluments will be effective July 1 amounting to an increase of 3% over the existing rate of 50% of the basic pay/pension to adjust the cost of living and to protect erosion of the pay’s real value.
“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be ₹9,448.35 crore per annum,” a statement from the government said.
This will benefit about 49.18 lakh Central government employees and 64.89 lakh pensioners, it added.
This is the second time the two components have been revised this year, the first time was on January 1.
The increment is based on increase in 12-monthly average of All India Consumer Price Rise Index for Industrial Workers published by the Labour Bureau.
Announcing the decision, Union Minister Ashwini Vaishnaw said, “The enhanced DA and DR will add to the pay cheque of Central government employees and pensioners. I want to congratulate them as this comes ahead of the festival of Deepavali.”
Chhattisgarh hikes DA for State employees by 4%
Earlier in the day, the Chhattisgarh State Government had also announced a hike in DA for State employees, when Chief Minister Vishnu Deo Sai said DA would be increased by 4%, taking it to 50% of the basic salary.
Published – October 16, 2024 03:57 pm IST
