The Indian Cabinet on Thursday (Mar 7) approved a four per cent hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) to pensioners by four per cent from January 1, 2024.

The Indian Cabinet on Thursday (Mar 7) approved a four per cent hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) to pensioners by four per cent from January 1, 2024. These decisions come ahead of the Lok Sabha elections this year. Briefing the media about Cabinet decisions, Indian Commerce and Industry Minister Piyush Goyal said that 4.9 million employees and nearly 6.8 million pensioners will benefit from the government decision. The decision would cost $1.55 billion (Rs 12,868.72 crore) per annum to the exchequer, Goyal added. A look at the increase in rates According to a report by the news agency ANI on Thursday, the additional instalment of DA and DR to pensioners represents an increase of four per cent over the existing rate of 46 per cent of the basic pay/pension to compensate against price rise. #Cabinet approves hike in Dearness Allowance to Government employees and Dearness Relief to pensioners by 4% from January 1, 2024 Around 50 lakh employees and 68 lakh pensioners to benefit from this: Union Minister @PiyushGoyal#CabinetDecisions pic.twitter.com/N7Ao405X2v — PIB India (@PIB_India) March 7, 2024 × "This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," a government statement said. Several central ministers and Bharatiya Janata Party (BJP) leaders hailed the government's decision to approve the increase in DA. With the increase in DA, transport allowance, canteen allowance, and deputation allowance among others have been increased by 25 per cent. House Rent Allowance has been raised from 27 per cent, 19 per cent and 9 per cent of basic pay to 30 per cent, 20 per cent and 10 per cent, respectively. (With inputs from agencies)

Indian Cabinet approves 4% hike in Dearness Allowance for central govt employees ahead of Lok Sabha polls

The Indian Cabinet has approved an 11% hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners effective July 1. The DA and DR were frozen last year as the pandemic hit the country.

Indian Cabinet approves DA hike from 17% to 28% for govt employees

The finance ministry on Thursday decided to put on hold increment in dearness allowance (DA) for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.

"Given the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid.

&nbsp;"The additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid," the Department of Expenditure said in an office memorandum.

However, DA and DR at current rates will continue to be paid. 
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According to sources, the combined savings on account of freezing of these instalments of DA and DR to central government employees and pensioners would be Rs 37,530 crore in the current financial year and 2021-22. 
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Generally, the states follow the Centre order on DA and DR. 
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It is estimated that the savings on the suspension of these instalments of DA and DR of state government employees and pensioners will be Rs 82,566 crore, the sources said.

Thus, the combined savings of the Centre and states will be Rs 1.20 lakh crore, which will help in fighting the battle against COVID-19 and its fallout.

The last DA hike for central government employees was effected last month effective January 1. 2020.

The Union Cabinet had approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent.

With Thursday's decision, this 4 per cent hike has been put on hold.

The finance ministry on Thursday decided to put on hold increment in dearness allowance (DA) for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.

The finance ministry on Thursday decided to put on hold increment in dearness allowance (DA) for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis. "Given the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid. "The additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid," the Department of Expenditure said in an office memorandum. However, DA and DR at current rates will continue to be paid. According to sources, the combined savings on account of freezing of these instalments of DA and DR to central government employees and pensioners would be Rs 37,530 crore in the current financial year and 2021-22. Generally, the states follow the Centre order on DA and DR. It is estimated that the savings on the suspension of these instalments of DA and DR of state government employees and pensioners will be Rs 82,566 crore, the sources said. Thus, the combined savings of the Centre and states will be Rs 1.20 lakh crore, which will help in fighting the battle against COVID-19 and its fallout. The last DA hike for central government employees was effected last month effective January 1. 2020. The Union Cabinet had approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent. With Thursday's decision, this 4 per cent hike has been put on hold.

Finance Ministry freezes increment on dearness allowance, dearness relief for central govt employees, pensioners

The Union Cabinet on Wednesday announced an increase to the dearness allowance from 5 per cent to 7 per cent for its 11 million employees and pensioners.&nbsp;

&quot;The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2018 representing an increase of 2 per cent over the existing rate of 5 per cent of the Basic Pay/Pension, to compensate for price rise,&quot; the official statement noted.

The government believes that that the hike will benefit around 48.41 lakh central government employees and 61.17 lakh pensioners.

The combined impact on the exchequer on account of both dearness allowance (DA) and dearness relief (DR) is estimated to be somewhere around Rs 6,077.72 crore per annum, and Rs 7,090.68 crore in 2018-19 (for a period of 14 months from January 2018 to February 2019) -- an increase which is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.&nbsp;

(With inputs from PTI)&nbsp;

The government believes that that the hike will benefit around 48.41 lakh central government employees and 61.17 lakh pensioners

The Union Cabinet on Wednesday announced an increase to the dearness allowance from 5 per cent to 7 per cent for its 11 million employees and pensioners. "The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2018 representing an increase of 2 per cent over the existing rate of 5 per cent of the Basic Pay/Pension, to compensate for price rise," the official statement noted. The government believes that that the hike will benefit around 48.41 lakh central government employees and 61.17 lakh pensioners. The combined impact on the exchequer on account of both dearness allowance (DA) and dearness relief (DR) is estimated to be somewhere around Rs 6,077.72 crore per annum, and Rs 7,090.68 crore in 2018-19 (for a period of 14 months from January 2018 to February 2019) -- an increase which is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission. (With inputs from PTI)

Government hikes dearness allowance to 7% from 5%

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