New Delhi: The union cabinet on Friday approved release of an additional instalment of dearness allowance to central government employees and dearness relief to pensioners, due from January 1, 2023.
“The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023. The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise,” a statement from finance ministry said.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,815.60 crore per annum.
The decision will benefit about 47.58 lakh central governments employees and 69.76 lakh pensioners, the statement said.