The Union Cabinet has increased Dearness Allowance (DA) and Dearness Relief (DR) by 4 percent for central government employees.
This decision, which takes effect from July 1, 2023, is expected to benefit 47 lakh government employees and 68 lakh pensioners.
As a result, central government employees will see their salaries increase starting from November, and they will also receive arrears for the period from July to October.
The impact of this 4 percent DA hike on salaries is noteworthy.
For individuals with a minimum basic salary of Rs 18,000, the current 42 percent DA results in an additional monthly income of Rs 7,560.
With the DA increasing to 46 percent, their monthly salary will rise to Rs 8,280.
Similarly, those with a maximum basic salary of Rs 56,900, who currently benefit from a 42 percent DA, receive Rs 23,898 as part of their monthly earnings.
With the DA increasing to 46 percent, these individuals will experience a monthly earnings increase to Rs 26,174.