Union Cabinet increases Dearness Allowance (DA) for Central government employees and pensioners by 4%; Employees to get bonus ahead of festive seasons;

The Union government has increased the DA of central government employees on the occasion of Diwali. DA of central government employees will increase from 42% to 46%. The increase in dearness allowance will be implemented with retrospective effect from 1 July 2023. The DA is increased by determining the All India Consumer Price Index (AICPI) for January to June.

Central government announced bonus for employees on the occasion of Diwali. Group D, Group C and certain category employees of Group B will get bonus. Eligible employees of central paramilitary and armed forces will also get bonus. 7000 rupees is given by the central government as a bonus to the employees on the occasion of Diwali.

Bonus will be given to employees who have been in service till 31 March 2021. Those who have worked continuously for at least 6 months during the financial year 2020-21 will be eligible for the bonus. Dearness Allowance (DA) is a cost of living allowance provided by the government to public sector employees and pensioners. Dearness Relief (DR) is of similar nature and benefits Central Government pensioners.

47 lakh central government employees and 68 lakh pensioners will get this benefit. The government regularly revises the DA/DR rate every six months to counter the declining purchasing power of monthly salary and pension wealth due to inflation.

During this season of festivities, the Central Government has taken the cabinet decision to increase the DA (Dearness Allowance) of Government officials and the Dearness Relief to pensioners by 4% from July 1, 2023

- Union Minister @ianuragthakur #CabinetDecisions pic.twitter.com/eJUXRWCVMC

— PIB India (@PIB_India) October 18, 2023