Revision of rates of Dearness Allowance to Central Government employees-effective from 01.07.2023
On October 20, 2023, the Government of India’s Ministry of Finance, Department of Expenditure, issued an Office Memorandum (No. 1/4/2023-E-II (B)) to announce the revision of Dearness Allowance rates for Central Government employees. The revised rates, effective from July 1, 2023, will increase from 42% to 46% of the Basic Pay. The term “Basic Pay” refers to the pay drawn in the prescribed Level in the Pay Matrix as per the 7th CPC recommendations, excluding any additional payments like special pay.
No. 1/4/2023-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Bert New Delhi
Dated the 20th October, 2023.
OFFICE MEMORANDUM
Subject: Revision of rates of Dearness Allowance to Central Government employees-effective from 01.07.2023.
The undersigned is directed to refer to this Department’s Office Memorandum No. 1/1/2023-E-II(B) dated 3rd April, 2023 on the subject mentioned above and to say that the President is pleased to decide that the rates of Dearness Allowance payable to Central Government employees, shall be enhanced from 42% to 46% of the Basic Pay with effect from 1st July, 2023.
2. 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.
3. 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).
4. 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.
5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways respectively.
6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
(Ram Gopal)
Deputy Secretary to the Government of India
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