The Union Cabinet approved two per cent hike in Dearness Allowance (DA) for central government employees on Wednesday.
The central government has increased the dearness allowance and dearness relief of its workers and pensioners from 5 percent to 7 percent.
This decision will see 1.10 crore central government staff and pensioners receive 7 per cent of their basic pay as DA, instead of 5 per cent.The Dearness Allowance hike is expected to benefit 48.41 lakh central government employees and 61.17 lakh pensioners.
New rates will be effective from January 1 , 2018 .
This hike in DA and DR together will put additional burden of Rs 6,077.72 crore on the state exchequer every year.