New Delhi: Ahead of the festival season, the Union Government on Thursday announced a seven percent hike in the Dearness Allowance of its employees. The DA for the Government employees would increase from 51 percent of their basic salary to 58 percent.

The decision to increase the Dearness Allowance (DA) for 50 lakh Central Government employees and Dearness Relief (DR) for about 40 lakh pensioners was taken by the Union Cabinet chaired by the Prime Minister.

Information and Broadcasting Minister Ambika Soni said, “The pay hike would be applicable from July 1. The hike in DA and DR would cost the exchequer annually Rs 7,229 crore, while for the remaining period of the current fiscal the implication would be Rs 4,819 crore.”