New Delhi: The Union Cabinet Wednesday increased the Dearness Allowance and Dearness Relief by 4 percent.
The increase is based on the recommendations of the 7th pay commission.
The Central Government employees and pensioners will become entitled to the higher amount of Dearness Allowance and Dearness Relief effective from 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 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 for a period of 8 months from July, 2022 to February, 2023.
The last increase in dearness allowance was announced in March, with effect from January 1, 2022. The DA increase in March was 3 percent over the previous rate of 31 percent.
The latest hike will amount to a dearness allowance of 38 percent for the central government employees.
Dearness Allowance is provided by the central government for its employees to adjust to the inflation-like situation while Pensioners get dearness relief same as the amount received by the employees of the central government.