Cabinet approves 4 per cent dearness allowance hike for central govt employees

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Ahead of Diwali festival, the Cabinet on Wednesday approved 4 per cent additional instalment of Dearness Allowance and Dearness Relief to central government employees and pensioners with effect from July 1, 2022.

There are about 50 lakh central government employees and over 61 lakh pensioners.

The central government employees and pensioners will become entitled to higher amount of Dearness Allowance (DA) and Dearness Relief (DR) respectively, with effect from July 1, 2022, said I&B Minister Anurag Thakur at a press briefing.

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The additional financial implications on account of the increase of DA to employees are estimated at Rs 6,591.36 crore per annum, and Rs 4,394.24 crore in the financial year 2022-23 (8 months from July, 2022 to February, 2023).

The additional financial implications in case of pensioners are estimated at Rs 6,261.20 crore per annum, and Rs 4,174.12 crore in the financial year 2022-23.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs 12,852.56 crore per annum and Rs 8,568.36 crore in the current financial year, the minister informed.

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