<h1>Union Cabinet Approves 2% Increase in Dearness Allowance for Government Employees and Pensioners, Effective January 2018.</h1> The Union Cabinet has approved a 2% increase in Dearness Allowance for Central Government employees and Dearness Relief for pensioners, effective from January 1, 2018. This adjustment raises the rate from 5% to 7% of the Basic Pay/Pension to offset inflation. Approximately 48.41 lakh employees and 61.17 lakh pensioners will benefit from this decision. The financial impact is estimated at Rs. 6077.72 crore annually and Rs. 7090.68 crore for the financial year 2018-19, covering 14 months. This increase follows the 7th Central Pay Commission's recommendations.