Ahead of Diwali festival, the Cabinet on Wednesday approved four per cent additional instalment of Dearness Allowance and Dearness Relief to central government employees and pensioners with effect from July 1, 2022.

The move will benefit about 41.85 lakh central government employees and 69.76 lakh pensioners.

The central government employees and pensioners will become entitled to higher amount of Dearness Allowance (DA) and Dearness Relief (DR) respectively, with effect from July 1, 2022, said I&B Minister Anurag Thakur at a press briefing here.

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The additional financial implications on account of the increase of DA to employees are estimated at ₹6,591.36 crore per annum, and ₹4,394.24 crore in the financial year 2022-23 (8 months from July, 2022 to February, 2023).

The additional financial implications in case of pensioners are estimated at ₹6,261.20 crore per annum, and ₹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 of the order of ₹12,852.56 crore per annum and ₹8,568.36 crore in the current financial year, the minister informed.

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