In a good news for Central Government employees and pensioners, the Union Cabinet on Wednesday approved a 11 percentage point hike in DA (Dearness Allowance) and DR (Dearness Relief), effective from July 1 this year. With this hike, the new DA rate will be 28 percent up from the current17 percent.

The hike will benefit more than 48 lakh currently serving Central Government employees and over 65 lakh pensioners, which will render an additional annual burden of Rs. 34,401 crore on the exchequer.

The DA and DR were frozen last year as the COVID-19 pandemic hit the country.