DA Hike News: In what could be seen as a festive season gift for Central government employees, the Union Cabinet on Wednesday (September 28) increased the dearness allowance of its staff by 4 per cent. This hike will take the DA effectively to 38 per cent for central government employees.
There are about 50 lakh central government employees and over 61 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.
The additional financial implications on account of the increase of DA to employees are 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.
Apart from DA hike, the government has also decided to extend the PM Garib Kalyan Anna Yojana (PMGKAY) for another 3 months. The scheme under which free food grains are provided to the poor was ending on September 30.
The PMGKAY was announced in March 2020 after PM Modi announced a nationwide lockdown owing to Covid pandemic. The scheme was earlier scheduled to conclude by March 31, 2022.