Central Govt Approves DA, DR Hike By 4% For Govt Employees

Came as a good news to the government employees, ahead of Diwali festival, the Union Cabinet approved 4% additional instalment of Dearness Allowance and Dearness Relief to central government employees. The announcement came on the 28th of September, Wednesday and is in effect from the 1st of July, 2022.

There are about 5 million central government employees and over 6.1 million pensioners, which would be benefited with the hike in DA and DR, across India.

According to sources, the Bharatiya Janata Party (BJP) led Central Government employees and pensioners would become entitled to a higher amount of Dearness Allowance (DA) and Dearness Relief (DR) respectively, with effect from July 1, 2022, said I&B Minister Anurag Thakur at a press meeting.

The additional financial implications on account of the 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 the 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 current financial year, the minister informed.

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