The cabinet on Wednesday approved the proposal to increase the dearness allowance for central government employees and pensioners to 38 per cent of the basic pay from 31 per cen.
Since the effective date for the staff would be paid the arrears with their latest salaries, in a festive cheer for about 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 implications on account of this increase of Dearness Allowance to Central Government employees are estimated at Rs 6,591.36 crore per annum; and Rs 4,394.24 crore in the financial year 2022-23 - from July, 2022 to February, 2023.
Previously, in March, the Cabinet had approved the proposal to increase the dearness allowance for central government employees and dearness relief for pensioners by 3 per cent to 34 per cent of the basic pay from 31 per cent previously, effective January 1, 2022.
Until December 31, 2019, all the employees paid based on the 7th Pay Commission were getting a dearness allowance at the rate of 17 per cent, and after that, there was no increase or revision due to Covid for one and a half years after that.
In January 2022 also, the dearness allowance was increased by 3 per cent and the addition of 4 per cent effective July, will take the DA to 38 per cent of basic pay.