The Union Cabinet on Friday increased the dearness allowance and dearness relief by 4 per cent to 42 per cent to benefit 47.58 lakh central government employees and 69.76 lakh pensioners.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 12,815.60 crore per annum, I&B Minister Anurag Thakur told reporters after the meeting of Cabinet Committee on Economic Affairs (CCEA).

The release of the additional instalment of dearness allowance to employees and dearness relief to pensioners will be effective from January 01, 2023.

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

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