New Delhi: The Union Cabinet has approved two per cent Dearness Allowance (DA) to Central government employees. The decision was taken at a cabinet meeting chaired by Prime Minister NarendraModi in New Delhi today. The Cabinet gave its nod to release an additional installment of DA to central government employees and Dearness Relief to pensioners with effect from 1st of January this year to compensate for price rise.

The decision will benefit about over 48 lakh Central Government employees and over 61 lakh pensioners. The combined impact on the exchequer on account of both DA and Dearness Relief would be over 6 thousand 77 crore rupees per annum.