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DA And DR Hikes By Central And State Governments.

Recently, Union Minister of Information & Broadcasting Anurag Thakur proposed a 4% increase in dearness allowance for Central Government workers. According to reports from Union Minister Anurag Thakur, the DA now has 42% of the support. The raise is in agreement with the recommendations of the 7th Central Pay Commission.

The Central government announced that the Cabinet authorized the payment of an added Dearness Allowance to Central Officials and Dearness Relief to pensioners. The move of increasing DA and DR will help the following people.

  • 47.58 lakh employees.
  • 69.76 lakh pensioners. 

DA and DR will be applied to central government workers and pensioners on January 1, 2023. According to reports, the increased amount would be paid at the current value of 42% of the March salary, with arrears granted for January and February. 

The overall impact on the exchequer from both Dearness Allowance and Dearness Relief will be 12,815.60 crores annually, Thakur publicized after a meeting of the Cabinet Committee on Economic Affairs. People who are participating in the Employees’ Pension Scheme 1995 declared earlier In March about the preparations in 200 locations, for a countrywide protest including the nation’s capital. The pensioners had asked for an ampler monthly income of ₹7,500, and a dearness allowance and medical coverage for themselves and their better halves.

DA And DR Hikes By Central And State Governments.

Here are details of other subsidies and implementations from the government.

The central government has extended for 1 more year the Pradhan Mantri Ujjwala Yojana subsidy. The government provided a subsidy of ₹200 per 14.2 kg cylinder for up to a dozen refills per year for Pradhan Mantri Ujjwala Yojana beneficiaries to protect them from excessive LPG costs.

The Central Government approved the MSP(Minimum Support Price) for raw jute for the next year 2023-24. The MSP for raw jute is set at ₹5,050 per quintal. The Government estimates that this would generate a return of 63.20% over the weighted average cost of production for all of India.

Rajasthan is following in the footsteps of the Centre.

Following the information from the central government, the Rajasthan government announced a 4% rise in the dearness allowance for Rajasthan employees and pensioners, who would now receive a 42% DA beginning January 1, 2023. Before, they were allocated 38% DA.

According to an official release, the decision would benefit around 8,00,000 Rajasthan workers and 4.40 lakh pensioners, and work-charged Panchayat Samiti, and Zila Parishad staff. The Rajasthan government would incur a financial burden of around 1,640 crores per annum because of this rise, according to the statement.

According to Rajasthan Chief Minister Ashok Gehlot, the Union announced a DA hike, but it is being implemented slowly, the Rajasthan government pledges immediate payment of the increased amount along with the message.

What is Dearness allowance(DA).?

Define Dearness Allowance (DA).

The term “DA” refers to the cost-of-living shifting that is provided to government workers. The Dearness Allowance is the element of the payment allocated to Central Government employees that seek to offset the impact of inflation on their current salaries. The allowance is totaled on the employee’s elemental earnings and is based on the most current Consumer Price Index for Industrial Workers (CPI-IW). The government’s Labor Bureau publishes the CPI-IW data monthly.

DA increases with the pay matrix, which is remarkable since it changes according to an employee’s position in the pay matrix.

How much will central government employees’ salaries rise with a 4% DA increase?

If a central government employee receives a monthly wise salary of Rs 25,000; at 38%, the dearness allowance is Rs 9,500. The DA would increase to Rs 10,500 when DA rises to 42%. As a result of the current hike, the income would be increased by Rs 1,000.

How much will pensioners be affected by the DR hike?

Dearness relief, aka DR, spiked by 4%.  A central government retiree, for example, receives a monthly wise pension of Rs 40,000. The pensioner used to receive Rs 15,200 in dearness relief at 38%. Once DR climbs to 42%, the pensioner would receive Rs 16,800 monthly. As a result, the pension would increase by Rs 1,600 monthly.

DA And DR Hikes By Central And State Governments.


Only time will tell how this DA and DR hike can benefit the common man in the face of rising costs and an economic crisis.

Edited by Prakriti Arora



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