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Cabinet approves 3% hike in dearness allowance

"This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners," an official statement said.

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New Delhi: Providing cushion from price rise, the Union Cabinet on Wednesday raised dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners by 3 per cent.

The combined impact on the exchequer on account of both DA and DR would be Rs 9,544.50 crore per annum.

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“This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners,” an official statement said.

Higher DA means a raise in take-home salary for the government employees as it is calculated as a percentage of the basic salary. 

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