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.

“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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