Cabinet approves 4% DA hike for Central govt employees, pensioners

Ahead of the 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.

The move will benefit about 41.85 lakh Central government employees and 69.76 lakh pensioners.

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“Central government employees and pensioners will become entitled to higher amounts 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 in New Delhi.

Financial implications

The additional financial implications on account of the increase of DA to employees are estimated at ₹6,591.36 crore per annum, and ₹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 ₹6,261.20 crore per annum, and ₹4,174.12 crore in the financial year 2022-23.

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

With agency inputs