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Nagpur: The union cabinet headed by Prime Minister Narendra Modi on Wednesday approved a hike of three per cent in Dearness Allowance or DA for the central government employees and Dearness Relief or DR for pensioners.

The basic pay was previously 31 per cent and has now been increased to 34 per cent. Dearness Allowance is a component of the salary of central government employees particularly aimed at giving them relief from the impact of inflation. Dearness Relief is what is given to pensioners.

The government in a statement said, “This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.”

The decision is said to benefit about 47.68 lakh central government employees and 68.82 lakh pensioners.

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