<h1>Union Cabinet Approves 6% Hike in Dearness Allowance for Central Employees and Pensioners from January 2016.</h1> The Union Cabinet approved an additional instalment of Dearness Allowance for Central Government employees and Dearness Relief for pensioners, effective from January 1, 2016. This decision increases the rate by 6 percent, raising it to 125 percent of the Basic Pay/Pension to offset inflation. Approximately 50 lakh employees and 58 lakh pensioners will benefit. The adjustment follows the 6th Central Pay Commission's recommendations. The financial impact on the exchequer is estimated at Rs. 6796.50 crore annually for Dearness Allowance and Rs. 7929.24 crore for Dearness Relief for the 14 months from January 2016 to February 2017.