Srinagar, April 18 -- Srinagar- The Union Cabinet on Saturday approved a 2 per cent increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, benefiting around 50.46 lakh employees and 68.27 lakh pensioners.The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.

Briefing reporters after the meeting, Union Minister Ashwini Vaishnaw said the hike would impose an additional annual burden of Rs 6,791.24 crore on the exchequer.

The revised DA and DR will come into effect from January 1, 2026, marking a 2 per cent increase over the existing 58 per cent rate of basic pay and pension. With this revision, the DA and DR will rise to 60 per cent. The hike has been app...