New Delhi, Oct 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a 3 percent increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective July 1, 2026.
The increase will raise DA and DR from the existing 60 percent to 63 percent of basic pay and pension, to compensate for the impact of rising prices.
The decision will benefit around 48.54 lakh central government employees and 68.71 lakh pensioners.
The combined annual financial impact on the exchequer will be Rs 10,016.10 crore.
The increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
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