New Delhi, October 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a three per cent increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective July 1, 2026.
With this revision, DA and DR will rise from 60 per cent to 63 per cent of basic salary and pension, respectively. Union Minister Ashwini Vaishnaw announced the decision, stating that the increase is aimed at providing relief against rising prices.
The decision is expected to benefit around 48.54 lakh Central Government employees and 68.71 lakh pensioners, taking the total number of beneficiaries to approximately 1.17 crore.
According to the government, the additional financial burden on the exchequer due to the increase in DA and DR will be around ₹10,016.10 crore annually.
The hike follows the established formula based on the recommendations of the 7th Central Pay Commission.
