NEW DELHI: The Cabinet on Wednesday approved a 3 per cent hike in Dearness Allowance (DA) for central government employees.The latest increase comes after the Cabinet approved a 2 per cent hike in DA and Dearness Relief (DR) for central government employees and pensioners in April, taking the rate to 60% of basic pay.The government revises DA and DR twice a year, in January and July, to help employees and pensioners cope with inflation. The latest announcement pertains to the July 2026 DA revision for central government employees.DA is a cost-of-living adjustment paid to government employees as a percentage of basic pay. DR is the corresponding benefit for pensioners. Both are intended to offset the impact of rising prices.