The Union cabinet on Friday approved a 4 per cent hike in dearness allowance (DA) to 21 per cent for central government employees, a move that will cost the exchequer an additional Rs 14,595 crore.

Briefing the media, information and broadcasting minister Prakash Javadekar said the cabinet had approved 4 per cent hike in DA to 21 per cent for 48 lakh government employees and 65 lakh pensioners.

He added that the government would incur Rs 14,595 crore additional expense on account of the hike.