<h1>Union Cabinet Approves 2% Increase in Dearness Allowance for Central Govt Employees and Pensioners, Effective January 2025</h1> The Union Cabinet has approved a 2 percentage point increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, effective January 1, 2025. This adjustment, raising the rate to 55% of basic pay/pension, aims to mitigate inflation impacts, benefiting approximately 1.15 crore individuals, including 48.66 lakh employees and 66.55 lakh pensioners. The financial implication of this increase is estimated at Rs 6,614.04 crore annually. This adjustment follows the 7th Central Pay Commission's recommendations to align with the cost of living changes.