DA Hike for Central Govt Employees: Pensioners Benefited Too

DA Hike for Central Govt Employees: This festive season brings a double celebration for central government employees with the increment in their Dearness Allowance. The Government of India has decided to increase the DA of all the employees of the Central Government by 4% as well as for pensioners in their DR. This increment is effective from 01 July 2022. Hence, the employees will get the arrears in their forthcoming salaries. Around 47.68 lakh central government employees and 68.62 lakh pensioners will receive the amount. These arrears are also applicable to all civilian and defence services employees.

This decision is taken at the Cabinet Committee on Economic Affairs (CCEA) meeting led by Prime Minister Narendra Modi where a proposal to release an additional instalment of 4% of Dearness Allowance and Dearness Relief to compensate for the price rise is put forward.

According to PIB Report, “The additional financial implications on account of this increase of Dearness Allowance to Central Government employees have estimated at Rs.6,591.36 crore per annum; and Rs.4,394.24 crore in the financial year 2022-23 (i.e. 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 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The combined impart 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 financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The government revises the DA and DR twice a year i.e on the 1st of January and the 1st of July. This year the government announced the increase in DA by 3% (from 31 to 34%) for January to June 2022. From July to December 2022, the government has increased the Dearness allowance (DA) for central government employees and Dearness Relief (DR) for pensioners by 4% i.e. 34 % to 38%.