Cabinet approves 3% additional DA and DR instalment for Central Government employees and pensioners
On 16 October 2024, in New Delhi, the Union Cabinet approved an additional instalment of Dearness Allowance and Dearness Relief of 3% over the existing 50% of basic pay/pension, with effect from 1 July 2024.
Summary
On 16 October 2024, in New Delhi, the Union Cabinet chaired by Prime Minister Narendra Modi approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1 July 2024, an increase of 3% over the existing rate of 50% of basic pay/pension. The increase follows the accepted formula based on the 7th Central Pay Commission's recommendations. The combined impact on the exchequer is ₹9,448.35 crore per annum, benefiting about 49.18 lakh employees and 64.89 lakh pensioners.
Key facts
- Date
- 16 Oct 2024
- Increase
- 3% over existing 50%
- Effective
- 1 Jul 2024
- Basis
- 7th Central Pay Commission formula
- Cost
- ₹9,448.35 crore per annum
- Beneficiaries
- 49.18 lakh employees; 64.89 lakh pensioners
Practice MCQs 2 questions
The additional DA/DR instalment approved by the Cabinet on 16 October 2024 is effective from:
Show answer
Correct answer: C — 1 July 2024
PIB, 16 Oct 2024: additional instalment of DA and DR w.e.f. 01.07.2024, an increase of 3% over the existing rate of 50%.
What is the combined annual impact on the exchequer of the 3% DA/DR hike approved on 16 October 2024?
Show answer
Correct answer: A — ₹9,448.35 crore
PIB, 16 Oct 2024: the combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum.