Ahead of Diwali festival, Cabinet approves 4% DA hike for central govt employees

Cabinet approves 4% DA hike for Central Govt employees
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Ahead of Diwali festival, The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a 4% increase each in dearness allowance (DA) of central government employees and pensioners, the Ministry of Finance said in a statement.

This move will benefit about 41.85 lakh central government employees and 69.76 lakh pensioners.

Information and Broadcasting Minister Anurag Thakur said in a press conference in New Delhi that Central Government employees and pensioners will be entitled to higher amount of Dearness Allowance (DA) and Dearness Relief (DR) respectively with effect from July 1, 2022.

The additional financial impact due to increase in DA to employees is estimated to be ₹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 implication is estimated to be ₹6,261.20 crore per annum in the case of pensioners and ₹4,174.12 crore in the financial year 2022-23.

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