Cabinet approved 7% hike in dearness allowance for central staff & pensioners from July 2011

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners
In a bid to provide relief from high inflation, the government has hiked the dearness allowance (DA) by a minimum of 7 per cent, benefiting over 50 lakh central government employees and 38 lakh pensioners. The hike will be applicable from July 1, 2011.
Dearness allowance is revised twice a year, on January 1 and July 1. The relief comes on the back of high retail prices, as inflation has constantly been above the 9 per cent mark. 
The total financial implication will be Rs 4819.22 Crores for this year and Rs 7228.76 Crores from the next year.

Source : NDTV Profit and PTI