Cabinet approves 3% DA hike for central govt employees, pensioners: What this means for your wallet DA Allowance: Following this increase, dearness allowance has increased from 55 per cent to 58 per cent of basic salary. New Delhi:The Union Cabinet has approved a 3 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners respectively. The government had previously increased dearness allowance (DA) and dearness relief (DR) by 2 per cent, effective January 1, 2025. Following this increase, dearness allowance had increased from 53 per cent to 55 per cent of basic salary. Dearness allowances and dearness relief are provided to employees and pensioners to protect them from inflation and adjust their cost of living.