The benefit will come into effect from January 1, 2024 and will cost the exchequer Rs 12,868.72 crore per annum.
The Union Cabinet on Thursday approved a four percent hike in dearness allowance for central government employees and dearness relief for pensioners.
Union Minister Piyush Goyal told reporters that the move will benefit 49.18 lakh employees and 67.95 lakh pensioners. The hike has been announced to compensate against price rise.
