Cabinet likely takes DA to 50% for government staff

The Union Cabinet has reportedly given its approval to increase dearness allowance for central government employees by 4 percent. With this adjustment, dearness allowance and dearness relief are expected to surpass 50 percent, as per sources cited by ET Now. Additionally, the Cabinet has extended the LPG subsidy scheme for another year. In October of the previous year, the Central Government had raised the LPG subsidy for beneficiaries of the Pradhan Mantri Ujjwala Yojana to ₹300 per cylinder. Union Minister Anurag Thakur had announced that additional LPG connections would be provided over the next three years, incurring a financial implication of ₹1,650 crore.

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Recent Adjustment in Dearness Allowance and Relief

The most recent adjustment in dearness allowance and dearness relief occurred in October 2023, authorized by the Union Cabinet, which raised it by 4 percentage points to 46 percent, effective from July 1, 2023. This enhancement benefited 48.67 lakh central government employees and 67.95 lakh pensioners, resulting in a cumulative annual financial impact estimated at ₹12,857 crore. The decision aligned with the recommendations of the 7th Central Pay Commission. The Union Cabinet also reportedly greenlit the AI Mission, as announced by PM Modi in December 2023.

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