New Delhi, July 14:

In a major relief to central government employees and pensioners, the Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved a steep hike in Dearness Allowance (DA) and Dearness Relief (DR) to 28 per cent, Union Minister Anurag Thakur said.

Currently, central government employees get DA of 17 per cent on their basic salary. Last year, the Cabinet had approved a 4 per cent hike in DA for central employees, which was supposed to be effective from January 1, 2021. However, in April 2020, the increment was stalled due to the pandemic.

The DA and DR installments are due for four periods namely January 1, 2020, July 1, 2020, January 1, 2021, and July 1, 2021.

The move is set to benefit around 50 lakh central government employees and over 60 lakh pensioners.