New Delhi: Ahead of Diwali festival, the Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved 4 percent additional instalment of Dearness Allowance and Dearness Relief to central government employees and pensioners with effect from July 1, 2022.
The announcement will benefit about 41.85 lakh central government employees and 69.76 lakh pensioners.
This is the second increase in the Dearness Allowance (DA) this year with the first, 3 per cent increase in DA, announced in March 2022, which was effective from January 1, 2022.
The Cabinet, chaired by PM Modi, has approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022, an official statement said on Wednesday.
The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, with effect from 01.07.2022, the statement added.
The additional financial implications on account of this 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 financial year.