As a result of the 7th Pay Commission, the Union Government has decided to raise the Dearness Allowance for Central Government Employees by 4% while also increasing the Dearness Relief for Pensioners. According to Union Minister Anurag Thakur’s comments on Cabinet decisions, the increase of DA will be enforced beginning July 1, 2023. The dearness allowance will go from being 42 percent of the total payment to being 46 percent after this rise of 4 percent. The judgement will be beneficial to 67.95 lakh pensioners and 48.67 lakh current employees of the central government.
A new version of the Consumer Price Index for Industrial Workers (CPI-IW) is published by the Labour Bureau on the first business day of every month. This index is used to calculate the dearness allowance that is given to workers and retirees.
After the meeting of the Union Cabinet, Information and Broadcasting Minister Anurag Thakur told reporters that the additional instalment of dearness allowance and dearness relief will be released on July 1, 2023, and that it will be effective from that date forward.
This rise is in line with the generally accepted formula and was determined to be appropriate based on the suggestions made by the 7th Central Pay Commission.
The Union Cabinet, which is led by the Prime Minister and is chaired by Narendra Modi, has given its approval for the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2023. This represents an increase of 4% over the existing rate of 42% of the Basic Pay/Pension, which is intended to compensate for price increases. This rise is in line with the generally accepted formula, which is derived from the suggestions made by the 7th Central Pay Commission.
It is estimated that both the Dearness Allowance and the Dearness Relief will have a cumulative impact on the exchequer equaling 12,857 crore rupees each and every year. It is estimated that approximately 48.67 lakh government employees and 67.95 lakh pensioners will profit from this.
Earlier, the government gave its approval for the payment of Diwali bonuses to officials at the Group C and non-gazetted Group B level, which also included paramilitary troops. For the fiscal years 2022–2023, the Finance Ministry has imposed a cap of 7,000 Indian Rupees on the amount that can be awarded to central government personnel as non–productivity linked bonuses (ad hoc bonuses).
According to the memorandum, the Department of Expenditure under the Finance Ministry stated that a non-productivity linked bonus (ad-hoc bonus) equivalent to 30 days emoluments had been granted to the employees of the central government in Group ‘C’ and all non-gazetted employees in Group B’, who are not covered by any productivity-linked bonus scheme. This bonus was awarded for the accounting year 2022-2023.
