The Union Cabinet approved the proposal to increase the Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners by 3%. For employees earning a basic pay of ₹30,000, the hike would translate into ₹900 extra/month. A pensioner with a basic pension of ₹12,000 will receive an extra ₹360/month. The hike comes just ahead of Diwali.