<h1>Union Cabinet Approves 6% Increase in Dearness Allowance for Central Govt Employees and Pensioners, Effective January 2015.</h1> The Union Cabinet approved an additional installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2015. The increase is six percent over the existing rate, raising DA/DR to 113 percent of the basic pay. This adjustment follows the 6th Central Pay Commission's recommendations. The financial impact on the exchequer is estimated at Rs. 6,762.24 crore annually and Rs. 7,889.34 crore for the 2015-16 fiscal year. Approximately 48 lakh government employees and 55 lakh pensioners will benefit from this decision.