NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a proposal to increase the Dearness Allowance (DA) of the central government employees and pensioners by 4 per cent effective from July 1, 2022.
Addressing a media briefing after the cabinet meeting, Union Information and Broadcasting Minister Anurag Thakur said the cabinet has approved the release of an additional installment of Dearness Allowance and dearness relief at a rate of 4 per cent to central government employees and pensioners.
This increase is based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022. The central government employees and pensioners will become entitled to a higher amount of Dearness Allowance and Dearness Relief, respectively from July 1 this year, an official statement said.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be of the order of Rs 12,852.56 crore per annum and Rs 8,568.36 crore in the financial year 2022-23 (i.e. for a period of 8 months from July 2022 to February 2023).
The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs 6,261.20 crore per annum; and Rs 4,174.12 crore in the financial year 2022-23 (i.e. for a period of 8 months from July 2022 to February 2023).
This is the second increase in the dearness allowance of the central government employees this year. In March 2022, the government announced a 3 per cent increase in DA. That increase was effective from January 1, 2022.
Central government employees, central government pensioners and family pensioners getting pensions from the central government will benefit from the increase in the DA.
Before the 4 per cent increase approved by the union cabinet on Wednesday, the effective DA of the central government employees and pensioners stood at 34 per cent. Now, this is increased to 38 per cent. (ANI)