This Aims to Alleviate the Financial Strain caused by the Rising Cost of Living 

NEW-DELHI: The Union Cabinet has given its nod for a significant augmentation of the Dearness Allowance (DA) for both central government employees and pensioners, enhancing it from 42% to 46%. This move is designed to provide relief to these individuals as they grapple with the escalating expenses associated with everyday life.

The Rise in the dearness allowance is expected to have a positive impact on a vast segment of employees and retired personnel. The precise percentage of this increment and the detailed plan for its implementation will soon be officially announced, offering a clearer picture for those affected.

This surge in the dearness allowance is being perceived as a generous gesture by the government towards central employees, especially ahead of the festive season. The Cabinet gave its approval to this decision during a session held on Wednesday. Henceforth, central employees will receive dearness allowance at a rate of 46%, effective from July 1, 2023. This revision will benefit over 48 lakh central employees and approximately 65 lakh pensioners across the country.

Affected central employees and pensioners will receive their monthly salaries based on the updated Dearness Allowance rates, which will be included in their October pay. This will encompass the dues for July, August, and September, reflecting the increase for the latter half of the year.

Notably, The Cabinet estimates that this augmentation in dearness allowance will impose an additional financial burden of approximately Rs 17,000 crore on the nation's exchequer. Moreover, media reports suggest that the Cabinet has also given the green light for a seven percent increase in the minimum support price (MSP) for six major rubber crops for the upcoming marketing season, further contributing to the welfare of the agricultural sector.