New Delhi, Oct. 1 -- DA hike for government employees: The Union Cabinet on Wednesday approved a 3% increase in the dearness allowance for central government employees ahead of Diwali, a decision that will impact nearly 49.19 lakh employees and 68.72 lakh pensioners.

Dearness allowance is a cost-of-living adjustment included in a government employee's salary. It aims to offset inflation and maintain purchasing power. The rates are usually reviewed and updated twice a year, typically around Diwali in October and Holi in March.

Dearness allowance is calculated based on the Consumer Price Index (CPI). For example, if the basic salary is Rs18,000 and the dearness allowance rate is 50%, then the DA amount will be 50% of Rs18,000, which is Rs...