On Wednesday, the cabinet has given great news to the central government employees and pensioners. Dearness Allowance has been increased by 4 per cent to 38 per cent. Till now, dearness allowance was being given to government employees at the rate of 34 percent, but now dearness allowance will be given to government employees at the rate of 38 percent from July 1, 2022.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved the proposal to release additional installment of Dearness Allowance to compensate for dearness . This hike is effective from July 1, due to which the arrears will be paid to the employees along with their salaries.
How much will the burden on the government exchequer
Announcing this, Union Minister Anurag Thakur said that due to this decision, there will be an annual burden of Rs 12,852 crore on the exchequer. Thakur said that in the period of eight months from July 2022 to February 2023, Rs 8,588 crore would be spent from the exchequer in implementing this decision.
#Cabinet approves release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners, due from 01.07.2022: Union Minister @ianuragthakur #CabinetDecisions pic.twitter.com/tWWBptdIrP
— PIB India (@PIB_India) September 28, 2022
Benefit to over 1 crore employees and pensioners
This announcement will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners. Along with this, this increase will also be applicable for the people working in the defense services.
When was DA increased earlier?
It is worth noting that the central government makes changes in dearness allowance and dearness relief on January 1 and July 1 every year, but due to one reason or the other, it is announced late. Earlier in March, the cabinet had approved a proposal to increase dearness allowance for central government employees and dearness relief (DR) for pensioners from 3 per cent of basic pay to 34 per cent from the earlier 31 per cent.
Explain that any change in dearness allowance is made as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, to compensate for the increase in prices.
The poor will get free ration till December 2022
Apart from this, the government has extended the period of Pradhan Mantri Garib Kalyan Anna Yojana to provide free food grains to the poor by three months i.e. till December, 2022. Giving information, Anurag Thakur said that the redevelopment of Delhi, Ahmedabad and CSMT-Mumbai railway stations has been approved by the cabinet at a cost of ten thousand crore rupees.
