2% Additional DA and Relief for Central Government Employees and Pensioners, Effective January 1, 2025 Approved by Cabinet
The Cabinet has approved the release of an 2% additional installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2025. This decision is set to benefit approximately 48.66 lakh Central Government employees and 66.55 lakh pensioners.
The increase in DA and DR is aimed at helping employees and retirees cope with rising living costs due to inflation. The combined financial impact of this increment on the exchequer is estimated to be around Rs. 6,614.04 crore annually. This adjustment reflects the government’s commitment to ensure that the purchasing power of its employees and pensioners is maintained amidst economic fluctuations.
Cabinet
Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners w.e.f. 01.01.2025
48.66 lakh Central Government employees and 66.55 lakhs pensioners to benefit
2% benefit to cost Rs. 6614.04 crore per annum to exchequer
The Union Cabinet chaired by Prime Minister Narendra Modi approved to release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53% of the Basic Pay/Pension, to compensate against price rise.
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs. 6614.04 crore per annum. This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
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