The Centre on Thursday approved an additional 5% dearness allowance for Central government employees and pensioners with retrospective effect from July this year. “The Cabinet has decided to release an additional instalment of DA to Central government employees and dearness relief to pensioners… representing an increase of 5% over the existing rate of 22% of the basic pay/pension to compensate for price rise” said Ambika Soni, Information and Broadcasting Minister, after the Cabinet meeting chaired by Prime Minister Manmohan Singh.