Centre on Friday approved to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 1 January 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.

The combine impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,815.60 crore per annum and will benefit about 47.58 lakh Central Governments employees and 69.76 lakh pensioners.

This increase is in accordance with the accepted formular which is based on the recommendations of the 7th Central Pay Commission.

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