The decision will benefit approximately 48.54 lakh Central government employees and 68.71 lakh pensioners.— DC Image

NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a three-percentage-point increase in dearness allowance (DA) for Central government employees and dearness relief (DR) for pensioners, with effect from July 1.

The increase will raise DA and DR from 60 per cent to 63 per cent of basic pay and pension, respectively, to compensate for rising prices.

The government said the combined annual financial burden on the exchequer would be ₹10,016.10 crore.

The decision will benefit approximately 48.54 lakh Central government employees and 68.71 lakh pensioners.

The increase is based on the formula recommended by the Seventh Central Pay Commission, an official statement said.

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