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The additional financial ramifications of this Dearness Allowance increase for Central Government employees are expected to be 6,591.36 crores each year, and 4,394.24 crore in the fiscal year 2022-23 - from July 20, 2022, to February 20, 2023.
Digital
Desk: The Cabinet accepted a proposal on Wednesday
to raise the dearness allowance (DA) for central government employees and
pensioners to 38% of the basic salary from 31% previously, an increase of 4%,
beginning July 1, 2022.
The proposal to release an additional tranche of DA to
compensate for the price increase was agreed upon at the Cabinet Committee on
Economic Affairs (CCEA) meeting led by Prime Minister Narendra Modi.
Since the latest
dearness announcement hike's effective date is July 1, the staff would be paid
the arrears with their latest salaries, in a festive cheer for approximately
47.68 lakh central government employees and 68.62 lakh pensioners, and is also
applicable for civilian employees and those employed in defence services.
The additional financial ramifications of this Dearness
Allowance increase for Central Government employees are expected to be 6,591.36
crores each year, and 4,394.24 crore in the fiscal year 2022-23 - from July 20,
2022, to February 20, 2023.
The rise in Dearness Relief to seniors is anticipated to add
Rs.6,261.20 crore each year, and Rs.4,174.12 crore in the fiscal year 2022-23.
The aggregate impact on
the exchequer from Dearness Allowance and Dearness Relief would be 12,852.56
crores each year, and 8,568.36 crores in the fiscal year 2022-23, that is, from
July 20, 2022, to February 20, 2023.
The central government revises
dearness allowance and Dearness Relief on January 1 and July 1 every year, but
this decision is usually announced in March and September.
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