7th Pay Commission: Cabinet approves 3% DA hike for government employees

Union cabinet on Tuesday, under the 7th Pay Commission, approved a 3 percent hike in dearness allowance (DA) for central government employees and pensioners which will cost the exchequer Rs 9,168.12 crore.

According to finance minister Arun Jaitley, the current addition will take the DA from 9 to 12 percent and that the move will benefit 48.41 lakh central employees and 62.03 lakh pensioners.

Previously, the cabinet had raised the DA from 7 to 9 percent last August 2018 which was implemented with retrospective effect from July 2018.