7th Pay Commission: Central government employees’ DA hiked by 4 percent

The long wait of the Central government employees is over as the Union government today allowed them a 4 per cent Dearness Allowance (DA) hike.

Currently, the Central employees are getting 38 percent DA. With the hike of 4 percent the figure jumps to 42. The hike will be effective from January 1, 2023.

The decision of the central government will also benefit the pensioners from the 4 percent hike in their Dearness Relief (DR).

“The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today has given its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023.  The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise,” the official notification said.

The hike will benefit around 47.58 lakh central government employees and 69.76 lakh pensioners. The combined impact of the DA and DR on the exchequer would be Rs.12,815.60 crore per annum, the notification added.

“This increase is in accordance with the accepted formula which is based on the recommendations of the 7th Central Pay Commission,” the notification said.