New Delhi, March 28: The Union Cabinet chaired by Prime Minister Narendra Modi approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2025 representing an increase of 2% over the existing rate of 53% of the basic pay/pension, to compensate against price rise.
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs. 6614.04 crore per annum. This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
