The Union Cabinet increased dearness allowance or dearness relief by 3 per cent for central government employees or pensioners, Union Minister Ashwini Vaishnav said in a Cabinet briefing on Wednesday.
The financial implication following the hike will be 9,448 crore, said Vaishnav. The announcement will benefit the 1.15 crore central government employees and pensioners.
DA/DR is paid to the government employees/pensioners to offset the impact of inflation and adjust their cost of living. It is calculated on the basis of increase in 12 monthly average of All India Consumer Price Index for Industrial Workers.
Revised twice a year in the month of January and July, the current hike in DA is introduced effective from July 1, 2024. The last hike of 4 per cent came in March this year, with effect from January 1, 2024. It was 50 per cent of the salary.
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On the same day, Chhattisgarh Chief Minister Vishnu Deo Sai announced a 4 per cent increase in DA/DR for state government employees, ahead of Diwali and festive season, bringing it to 50 per cent of the basic salary. It is set to be implemented from October 1, benefitting approximately 3.9 lakh employees.
This year, the Himachal Pradesh government has also surprised its employees by implementing a 4 per cent DA hike just before Dussehra. This change is anticipated to benefit 180,000 employees and 170,000 pensioners in the state.
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