<h1>Union Cabinet Approves 7% Increase in Dearness Allowance for Central Employees, Dearness Relief for Pensioners from July 2012.</h1> The Union Cabinet approved an additional installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2012. This represents a 7% increase over the existing 65% of Basic Pay/Pension, aimed at offsetting inflation. The adjustment follows the 6th Central Pay Commission's recommendations. The financial impact on the exchequer is estimated at Rs. 7408.24 crore annually and Rs. 4938.78 crore for the financial year 2012-2013, covering eight months from July 2012 to February 2013.