The Central Government has announced an increase in the Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for central government pensioners by 4 percent.
This will increase the overall DA/DR from current 38% to 42%.
The hiked DA/DR will be effective from January 1, 2023.
This move will benefit around 47.58 lakh central government employees and 69.76 lakh central government pensioners.
The increase in DA and DR is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.
It must be noted that DA is revised twice every year.
Before this, the revision in DA/DR was announced in September 2022, by 4% to 38%, to be effective retrospectively from July 1, 2022.