<h1>Union Cabinet Approves 4% Hike in Dearness Allowance for Central Employees and Pensioners, Effective July 1, 2023.</h1> The Union Cabinet has approved an additional instalment of Dearness Allowance for Central Government employees and Dearness Relief for pensioners, effective from July 1, 2023. This adjustment represents a 4% increase, raising the rate from 42% to 46% of the Basic Pay/Pension, aimed at offsetting inflation. The decision, based on the 7th Central Pay Commission's recommendations, will impact approximately 48.67 lakh employees and 67.95 lakh pensioners, with an estimated annual cost to the exchequer of Rs.12,857 crore.