New Delhi, Oct 1 (PTI) In a Diwali bonanza to central employees and pensioners, the Union Cabinet on Wednesday decided to increase Dearness Allowance (DA)/ Dearness Relief (DR) by 3 per cent, envisaging an annual outlay of Rs 10,083.96 crore.

The hike in DA and DR comes days after the rationalisation of GST rates, bringing down prices of mass consumption items like ghee, paneer, butter, 'namkeen', ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC, and washing machines will become cheaper.

The DA/DR increase of 3 per cent over the existing rate of 55 per cent of the basic pay/pension to compensate against the price rise is effective July 1, 2025.

This will benefit about 49.19 lakh central government employees and 68.72 lakh pensioners.

The combined impa

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