As per instructions issued by Ministry of Finance, Govt of India, the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 38% to 42% of the Basic Pay with effect from 1″ January, 2023.
The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
