Delhi, March 25: The Union Cabinet on Friday approved a hike of four per cent in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners on 7th pay commission recommendations. With this, the new effective DA rate goes up to 42 per cent. To account for increased costs, the new instalment represents a 4 per cent increase over the current rate of 38 per cent of the Basic Pay/Pension.

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the release of an additional instalment of dearness allowance for central government employees and dearness relief for pensioners, Union Information & Broadcasting Minister Anurag Thakur announced on Friday evening. 7th Pay Commission Dearness Allowance Latest Update: Cabinet Approves Release of Additional Instalment of DA to Employees, Pensioners.

Dearness allowance (DA) and dearness relief (DR) are revised twice a year, on January 1 and July 1 of each year. The most recent increase, will benefit approximately 48 lakh central government employees and 68 lakh pensioners, increased the DA by 4 per cent to 42 per cent on 7th pay commission recommendations. 7th Pay Commission: Government Likely to Raise Fitment Factor By This Date, Check Details Here.

The DA is given to employees based on the basic pay of the employees, while the DR is given on the basis of basic pension.

For example, a government employee with a salary of Rs 60,000 will see a monthly increase of Rs 2,400 after a 4 per cent DA hike. The government has approved the additional instalment of DA and DR to help offset the effects of inflation and rising prices on central government employees and pensioners.

Similarly, the monthly pension will also increase for 69.76 lakh pensioners. For example, if someone gets a basic pension of Rs 30,000 a month, then he used to get Rs 11,400 as dearness relief. Now, the amount will increase to Rs 12,600, thus raising the pension by Rs 800 per month.

(The above story first appeared on LatestLY on Mar 25, 2023 01:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website