New Delhi: The Cabinet, chaired by Prime Minister Narendra Modi, has approved the release of additional instalment of Dearness Allowance (DA) and Dearness Relief at 4 per cent to the Central government employees and pensioners due from 1.7.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022, said the Finance Ministry in a statement on Wednesday.

The Central government employees and pensioners will become entitled to higher amounts of Dearness Allowance and Dearness Relief respectively with effect from 1.7.2022. The additional financial implications on account of this increase of DA to the 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, that is, for a period of eight months from July, 2022 to February, 2023.

The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs 6,261.20 crore per annum; and Rs.4,174.12 crore in the financial year 2022-23, that is, for a period of eight months from July, 2022 to February, 2023.

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 financial year 2022-23, that is, for a period of eight months from July, 2022 to February, 2023. /BI/