Over one crore central government employees and pensioners are awaiting an announcement related to the Terms of Reference of 8th Pay Commission. (Photo: Vijay Sartape/ NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Union Cabinet on Wednesday approved a 3% rise in dearness allowance for central government employees. Accordingly, the dearness relief for pensioners has also been increased by 3%.

This increment has raised DR and DA to 58% from 55% of the basic pay. The increase in the key allowance will cost the exchequer around Rs 10,084 crore, Union Minister Ashwini Vaishnaw said in a briefing following the Cabinet meeting.

The employees and pensioners will be eligible for arrears, as the DA and DR hike will come into effect from July 1.

The decision, wh

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