Cabinet approves DA hike by 4% from July 2022 for Central Govt Employees and Pensioners
Cabinet approves release of additional installment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners, due from 01.07.2022
The cabinet on Wednesday approved the proposal to increase the dearness allowance (DA) for central government employees and pensioners to 38 percent of the basic pay from 31 percent previously, up 4 percent, effective July 1, 2022.
At the Cabinet Committee on Economic Affairs (CCEA) meeting headed by Prime Minister Narendra Modi the proposal to release an additional installment of DA was approved to compensate for the price rise.
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Since the effective date for the latest dearness announcement hike is July 1, the staff would be paid the arrears with their latest salaries.
The announcement will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners and is also applicable for civilian employees and those employed in defence services.
PIB Statement
The Cabinet, chaired by Prime Minister, Shri Narendra 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.
The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.
The additional financial implications on account of this increase of Dearness Allowance to Central Government employees are estimated at Rs.6,591.36 crore per annum; and Rs.4,394.24 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).
The combined impart 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 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).
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