Cabinet Increases Dearness Allowance to 46% and Announces Diwali Bonus for Central Government Employees and Pensioners

Government of India’s move aimed at improving the financial well-being of Central Government employees and pensioners, the Union Cabinet has approved a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR). This increase will be effective from July 1, 2023.

The decision, announced following a Union Cabinet meeting held on Wednesday, means that the Dearness Allowance for Central Government employees will now stand at 46%, up from the previous rate of 42%. The rise in Dearness Relief will also directly benefit pensioners.

Approximately 48.67 lakh Central Government employees and 67.95 lakh pensioners are set to gain from this decision. This move is seen as a special Diwali gift from the government to these individuals, emphasizing the government’s commitment to their welfare.

Union Minister Anurag Thakur, in sharing this decision, confirmed that the 4% hike in Dearness Allowance will come into effect on July 1, 2023. The increase reflects the government’s dedication to enhancing the financial prospects of its employees and pensioners.

Furthermore, in the spirit of the festive season, the Modi Government has also announced a Diwali bonus of ₹7,000 for government employees, adding to the joy of Central Government employees during this festive time.

This development comes as a positive step toward ensuring the financial stability and well-being of Central Government employees and pensioners and is expected to have a positive impact on their lives.


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