Union Cabinet Approves 4 Per Cent DA Hike For Government Employees

7th Pay Commission: DA of central government employees and pensioners will increase to 46 per cent form the current 42 per cent

DA hike

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The Union Cabinet on Wednesday approved 4 per cent hike in Dearness Allowance (DA) for central government employees. This move is expected to benefit a large section of the workforce and retired government personnel, providing relief amid inflationary challenges.

Following this announcement, the DA of central government employees and pensioners will increase to 46 per cent form the current 42 per cent.  This move will benefit about 47 lakh central government employees and 68 lakh pensioners. The hike, effective from July 1, 2023, will lead to enhanced salaries for the month of November, along with arrears for the period from July to October.

The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. Labour Ministry oversees the labour bureau.

Cabinet approves 4 pc hike in DA for central government employees

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The DA of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December. For those with a minimum basic salary of Rs 18,000, the current 42 per cent DA provides a monthly increase of Rs 7,560. Following the increase to 46 per cent, the monthly salary will increase to Rs 8,280.

In the Cabinet meeting the government has also approved a hike in minimum support price (MSP) for six Rabi crops. The government has increased rabi barley MSP by Rs 115 per quintal and sunflower and wheat MSP by Rs 150 per quintal. During the meeting, it was decided that rabi mustard MSP would be raised to Rs 22 per quintal and rabi channa MSP by Rs 105 per quintal.

Earlier, Diwali bonuses for Group C and non-gazetted Group B level officials, including paramilitary forces, was approved by the government. For 2022–2023, the finance ministry has set a limit of Rs 7,000 for the calculation of non–productivity linked bonuses (ad hoc bonuses) for central government employees.