Cabinet approves 4% increase in DA for central govt employees; check details

As a result of this decision, central government employees can expect to receive enhanced salaries from the month of November, along with arrears for the period spanning from July to October.

The Union Cabinet made a significant decision that will undoubtedly brighten the Diwali for central government employees and pensioners. The Cabinet approved a 4 percent hike in Dearness Allowance (DA). This decision will come into effect from July 1, 2023, and raises the DA for central government employees from the existing 42 percent to 46 percent.

This 'Diwali gift' is a long-awaited and welcome announcement for lakhs of central government employees and pensioners who will reap the benefits. The decision is set to positively impact the financial well-being of 47 lakh central government employees and 68 lakh pensioners.

As a result of this decision, central government employees can expect to receive enhanced salaries from the month of November, along with arrears for the period spanning from July to October.

For instance, those with a minimum basic salary set at Rs 18,000, who currently enjoy a 42 percent DA, will now see their monthly salary increase from Rs 7,560 to Rs 8,280. Similarly, individuals with a maximum basic salary of Rs 56,900, benefiting from a 42 percent DA, will witness a rise in their monthly earnings from Rs 23,898 to Rs 26,174 under the 46 percent DA.