Ahead of the festive season, the 4.86 million Central
Government employees has a reason to cheer as during the Cabinet meeting
chaired by PM Narendra Modi the dearness allowance (DA) was raised by four
percentage points to 46 per cent for them.
A similar hike has been approved in the dearness
relief (DR) for 6.8 million pensioners.
The new rates will come into effect from July 1, 2023,
said Union Information and Broadcasting Minister Anurag Thakur after the
cabinet meeting.
The decision will have a combined yearly impact of
₹12,857 crore on the exchequer.
The three-month-long festive season, involving
Navratra, Diwali, Chhat Puja, Gurupurab and Christmas, has already begun.
“This increase is broadly in accordance with the
accepted formula, which is based on the recommendations of the 7th Central Pay
Commission,” said the official.
The decision will surely bring cheers for more than 10
million families in general, however, experts warned of high food and fuel
rates worldwide in view of the deteriorating geopolitical situation in the
Middle East, adversely impacting Bharat. The nation imports 87 per cent of the
crude oil it processes.
Central Pay Commissions are periodically set up to go
into various issues of emolument structure, retirement benefits and other
service conditions of the Central Government employees and to make
recommendations on the required changes.
As per the Commission’s report, DA is paid to the Central
Government employees to adjust the cost of living and to protect their basic
pay from erosion in the real value on account of inflation.
The allowance is presently based on the consumer price
index-industrial workers.
NE Watch Desk With ANI inputs
