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4% Hike in Dearness Allowance for Central Government Employees, Pensioners

4% Hike in Dearness Allowance for Central Government Employees, Pensioners

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NEW DELHI, Sept 28: The dearness allowance for the central government employees and dearness relief for the central government pensioners have been hiked by four per cent with retrospective effect from July, 2022.

The increase in the current calendar year would be as much as seven per cent because in March the allowances were hiked by three per cent effective from January 1, 2022. With the two increases in the current year, the DA and DR rates go up to 38 per cent of the basic pay from 31 per cent last year.

The cabinet on Wednesday approved the proposal to increase the dearness allowance (DA) for central government employees and pensioners. At the Cabinet Committee on Economic Affairs (CCEA) meeting headed by Prime Minister Narendra Modi the proposal to release an additional installment of DA was approved to compensate for the price rise.

Since the effective date for the latest dearness announcement hike is July 1, the staff would paid the arrears with their latest salaries bringing up festive cheer for its 47.68 lakh employees and over 68.62 lakh pensioners. The hike would also be applicable for civilian employees and those employed in defence services.

The additional financial implications on account of this increase of Dearness Allowance to Central Government employees are estimated at ₹ 6,591.36 crore per annum; and ₹ 4,394.24 crore in the financial year 2022-23. The increase of Dearness Relief to pensioners are estimated to add 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 to the tune of ₹ 12,852.56 crore per annum; and ₹ 8,568.36 crore in the financial year 2022-23.

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.

(Manas Dasgupta)

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