The dearness allowance, which is a portion of the basic income and is paid on addition as a cost of living adjustment, is one of the perks for government employees.
After a long wait, the Union Cabinet has decided to increase the dearness allowance for central government employees by 4%.From January 2023, the allowance will be applied at the new rate.
According to Union Minister Anurag Thakur, the Union Cabinet approved a proposal on Friday to increase the dearness allowance for its more than one crore employees by 4%, increasing the whole amount to 42% from 38%.
According to the Minister, the overall additional outgo on the exchequer would be Rs 12,815 crore per year to fund for the increase in DA.