4% DA Hike Approved by Central Government from January 2024 - Total DA Reaches 50%
Union Cabinet Approves 4% Additional Dearness Allowance/Dearness Relief to Central Government Employees and Pensioners, Total DA Reaches 50%
Download 4% DA Hike for CG employees from January 2024 in PDF
What Happens when DA Reaches 50% in PDF
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has sanctioned a significant increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. Effective from January 1, 2024, this move marks a 4% increment over the existing rate of 46% of the Basic Pay/Pension, aiming to offset the impact of rising prices on the populace.
This decision will have a considerable fiscal impact, with an estimated expenditure of Rs. 12,868.72 crore annually on account of both Dearness Allowance and Dearness Relief. Approximately 49.18 lakh Central Government employees and 67.95 lakh pensioners stand to benefit from this measure.
The adjustment aligns with the recommended formula derived from the guidelines of the 7th Central Pay Commission, ensuring fairness and consistency in the compensation structure for government employees and retirees.
The implementation of this additional instalment of Dearness Allowance and Dearness Relief underscores the government's commitment to addressing the economic concerns of its workforce and pensioners amidst the challenging inflationary environment.
With this increment, the total Dearness Allowance now stands at 50%, providing some relief to Central Government employees and pensioners grappling with the escalating cost of living.
This step reflects the government's proactive approach to mitigate the financial burdens faced by its employees and pensioners, reinforcing its commitment to their welfare and well-being.
In conclusion, the approval of this 4% increase in Dearness Allowance/Dearness Relief by the Union Cabinet reaffirms the government's resolve to ensure the financial security and stability of its employees and retirees, thereby fostering a conducive environment for their continued contribution to the nation's growth and development.
