Special Correspondent

NEW DELHI: The three per cent hike in dearness allowance (DA) for the Central Government employees and dearness relief (DR) for pensioners will be effective from January 1 this year.

The hike was decided at a Cabinet meeting on Thursday.

With this, the rate of DA and DR has gone up from 21 to 24 per cent.

The decision is expected to cost the exchequer an additional Rs. 1590 crore Rs. 1130 crore on account of DA and Rs. 460 crore due to DR.