NEW DELHI: Ahead of Diwali, Union Cabinet Wednesday approved a 3% hike in DA for central government employees and dearness relief (DR) for pensioners. The decision will benefit over 1 crore employees and pensioners, and it will be applicable for the July-Dec 2026 period.With this, the DA and DR will increase from the earlier 60% to 63% of the basic pay.The combined impact on the exchequer on account of this increase would be Rs 10,016 crore per annum. “This increase is in accordance with the accepted formula, which is based on the recommendations of the seventh Central Pay Commission,” the government said.
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