The Union Cabinet on Friday cleared the proposal to hike dearness allowance for central government employees following the rise in inflation.
"The proposal to hike DA to government employees has been approved by the Cabinet," Fertiliser Minister Ram Vilas Paswan told reporters without giving details.
The government had hiked the DA last time by four per cent and increased pension benefits accordingly in September last year incurring a burden of about Rs 1,450 crore (Rs 14.5 billion).