Cabinet approves 4% increase in DA for Central Government employees

Cabinet approves 4% increase in DA: The Union Cabinet increased the dearness allowance (DA) and dearness relief (DR) by 4% beginning July 1, 2022, benefiting 6.97 million pensioners.

Cabinet approves 4% increase in DA: The Union Cabinet increased the dearness allowance (DA) and dearness relief (DR) by 4% beginning July 1, 2022, benefiting 6.97 million pensioners and 4.18 million central government employees. This was done ahead of the Diwali festival.

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Cabinet approves 4% increase in DA: Key Points

The DA and dearness relief (DR) payment is a 4% increase above the current rate of 34% of basic pay/pension.
The impact of both dearness allowance (DA) and dearness relief (DR) would be combined and amount to Rs 12,852.5 crore per year on the exchequer.
Central government employees and pensioners will each be entitled to a higher sum of dearness allowance (DA) and dearness relief (DR), with effect from July 1, 2022,
The dearness allowance (DA) and dearness relief (DR) have been raised, based on the percentage rise in the 12-month average of the All India Consumer Price Index for the period ending in June 2022.
Increased dearness allowance for employees is expected to cost the exchequer Rs 6,591.36 billion annually and Rs 4,394.24 billion in 2022–2023 (8 months from July, 2022 to February, 2023).
With dearness relief, the impact would be Rs 4,174.12 crore in the current fiscal year and Rs 6,261.20 crore annually.