Centre Approves 4% Increase in Dearness Allowance for Central Government Employees

The hike, effective from January 1, 2024, is set to benefit millions and includes a significant rise in various allowances.

The Centre has approved a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, effective from January 1, 2024.
This increase raises the total DA to 50% of the basic salary and includes a 25% hike in transport, deputation, and canteen allowances.
The decision is expected to benefit 49.18 lakh central government employees and 67.95 lakh pensioners, with an estimated cost of Rs 15,000 crore for January and February in the fiscal year 2024.
Employees and pensioners will receive arrears for January and February, along with the revised rates for March.
The increase in DA and DR is based on the All-India Consumer Price Index (AICPI) and follows the recommendations of the 7th Pay Commission.