The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a proposal to increase the dearness allowance (DA) of the central government employees and pensioners by 4 per cent.

This is the second increase in the dearness allowance of the central government employees this year. In March 2022, the government announced 3 per cent increase in DA. That increase was effective from January 1, 2022. Central government employees, central government pensioners and family pensioners getting pensions from the central government will benefit from the increase in the DA.

Before the 4 per cent increase approved by the union cabinet on Wednesday, the effective DA of the central government employees and pensioners stood at 34 per cent. Now, this is increased to 38 per cent.

The new increase is effective from 1st July 2022.

"Cabinet approves release of additional instalment of Dearness Allowance and Dearness Relief @ 4 per cent to Central Government employees and pensioners, due from 01.07.2022," PIB tweeted.

Addressing a media briefing after the cabinet meeting, Union minister Anurag Thakur said the Cabinet has also decided to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for another three months.

The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) scheme was introduced after the outbreak of the COVID-19 pandemic.

(With inputs from ANI)