Cabinet nod to 4% DA hike for govt employees

■ 4% dearness relief to pensioners ■ To be applicable from July 1, 2023 ■ Bonus for non-gazetted staff of railways

- JITENDRA CHOUBEY

THE Union Cabinet chaired by Prime Minister on Wednesday approved the release of an additional 4 per cent Dearness Allowance (DA) to government employees and Dearness Relief (DR) to pensioners, benefitting around 1.27 crore people.

It also announced a bonus equivalent to 78 days' salary to all eligible non-gazetted railway employees, except those of Railway Protection Force. The combined cost to exchequer on account of the DA, DR and bonus is pegged at ₹14,825.87 crore per annum.

DA and DR are money given by the government to its employees and pensioners, respectively, as a relief from the effect of inflation. It is calculated as a percentage of the basic salary.

The current increase in DA and DR will be applicable from July 1, 2023. With the 4 per cent increase over the existing DA amounting to 42 per cent of the basic pay or pension, the total percentage of DA and DR now stands at 46 per cent.

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