Diwali bonanza: Centre approves additional instalment of DA to central govt employees

In a major announcement ahead of Diwali, the Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners.

This will be effective from July 1, 2024 which representing an increase of three percent over the existing rate of 50% of the Basic Pay/Pension, to compensate against price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, reported PIB.

The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum.