Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved a 3% hike in Dearness Allowance for Central Government employees and pensioners which will be implemented from July 1.
The hike is over the existing DA rate of 28 per cent of the Basic Pay or Pension, to compensate for price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 9,488.70 crore per annum. This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.