The Union Cabinet has approved the release of additional installment of gratuity for Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in the 12-month average of the All India Consumer Price Index number for the period ending June 2022.
Accordingly, the central government employees and pensioners will get the increase in dearness allowance and dearness allowance from 01.07.2022.
It is estimated that due to the increase in subsidized prices, the central government will incur an additional financial cost of Rs 6,591.36 crore per annum. 4,394.24 crore in the financial year 2022-23 (i.e. for the 8 month period from July 2022 to February 2023).
6,261.20 crore is estimated to cost Rs 6,261.20 crore per annum due to the increase in subsidy relief to pensioners. 4,174.12 crore in FY 2022-23 (i.e. for the 8 month period from July 2022 to February 2023).
The annual cost of both ex-gratia and ex-gratia is Rs 12,852.56 crore. 8,568.36 crore in the financial year 2022-23 (i.e. for the 8-month period from July 2022 to February 2023), the central government said.