The Cabinet today approved additional 2 percent hike in dearness allowance and dearness relief, a move that will benefit about 1.1 crore central government employees and pensioners, an official release said.
The hike will be effective from July 1. The impact on the exchequer on account of both DA and DR would be Rs 6,112.2 crore per annum, the release added.
The decision was taken at the cabinet meeting chaired by Prime Minister Narendra Modi in Delhi.
The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.
As per the release, the increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.
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