India, March 28 -- The Cabinet on Friday gave its nod to a 2 per cent hike in Dearness Allowance or DA for central government employees, benefitting nearly 1.15 crore employees and pensioners.

Union minister Ashwini Vaishnaw, after the Cabinet meeting, said the Union Cabinet has approved the release of an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2025, representing an increase of 2 per cent over the existing rate of 53 per cent of the basic pay/pension, to compensate against price rise.

The combined impact on the exchequer on account of increase in both DA and DR would be Rs.6,614.04 crore per annum.

The move will benefit about 48....