7th Pay Commission: The Centre brought festive cheer for the government employees on the fourth day of Navratri as it announced a four per cent DA hike for them on Wednesday.
The move will benefit about 41.85 lakh Central government employees and 69.76 lakh pensioners.
Cabinet approved 4 per cent DA hike in 2022
Ahead of Diwali festival in 2022 as well, the Cabinet approved 4 per cent additional instalment of Dearness Allowance and Dearness Relief to central government employees and pensioners with effect from July 1, 2022. The move benefited 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 in Delhi.
The additional financial implications on account of the increase of DA to employees were estimated at Rs 6,591.36 crore per annum, and Rs 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 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 of the order of Rs 12,852.56 crore per annum and Rs 8,568.36 crore in the current financial year, the minister informed.