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Union Cabinet Approves 4% Hike in DA for Central Govt Employees and Pensioners
Union Cabinet Approves 4% Hike in DA for Central Govt Employees and Pensioners
The Union Cabinet has approved a 4% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for central government pensioners, effective from July 1, 2023. This decision will benefit approximately 48.67 lakh central government employees and 67.95 lakh central government pensioners. The increase in DA and DR is in line with the recommendations of the 7th Central Pay Commission and is aimed at compensating against price rise.
Key Takeaways:
- Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for central government pensioners have been hiked by 4%.
- The increase is effective from July 1, 2023, and will result in a rise in the take-home salary for central government employees and an increase in the monthly pension for pensioners.
- The decision will benefit around 48.67 lakh central government employees and 67.95 lakh central government pensioners.
- The increase in DA and DR is based on the recommendations of the 7th Central Pay Commission and is intended to mitigate the impact of inflation.
The Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for central government pensioners have been hiked by 4%, effective from July 1, 2023. This increase will result in a rise in the take-home salary for central government employees and an increase in the monthly pension for pensioners.
Let’s calculate the increase in salary for a central government employee and the increase in pension for a pensioner based on the given information:
Increase in Salary for Central Government Employee:
- Basic Salary: Rs 39,900 per month
- Previous DA: 42% of the basic salary = Rs 16,758
- New DA: 46% of the basic salary = Rs 18,354
- Increase in DA: Rs 18,354 - Rs 16,758 = Rs 1,596 per month
Increase in Pension for Central Government Pensioner:
- Basic Pension: Rs 40,100 per month
- Previous DR: 42% of the basic pension = Rs 16,842
- New DR: 46% of the basic pension = Rs 18,446
- Increase in DR: Rs 18,446 - Rs 16,842 = Rs 1,604 per month
Therefore, the central government employee’s salary will increase by Rs 1,596 per month, and the central government pensioner’s pension will rise by Rs 1,604 per month, effective from July 1, 2023.
This increase in salary and pension will apply to central government employees and pensioners with retrospective effect from July 1, 2023. Additionally, the central government employees and pensioners will likely receive the increased salary from October along with arrears from July 2023.
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