The move is expected to provide relief to nearly one crore central government employees and pensioners.

Amid Durga Puja festivities and ahead of Dussehra and Diwali, the Union Cabinet under the chairmanship of Prime Minister Narendra Modi on Wednesday approved a 3% hike in Dearness Allowance (DA) and Dearness Allowance for central government employees and pensioners. The hiked DA and DR are effective July 1.

The move is expected to provide relief to nearly one crore central government employees and pensioners. DA and DR are given to central government employees and pensioners to cushion their household expenses amid rising costs of essentials.

This is the second hike this year after the 2% hike the Centre had announced in March.

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