On 18 April 2026, the Union Cabinet approved the release of an additional instalment of 2% Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners. With this revision, the DA/DR rate stands enhanced from 58% to 60% of Basic Pay/Pension.
The revised rates will be effective from 1 January 2026.
Also Read: Last Year, in July Cabinet approved a 3% increase in Dearness Allowance and Dearness Relief for Central Government employees and pensioners.
Key Highlights:
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Chaired by Prime Minister Mr. Narendra Modi, the Union Cabinet sanctioned a 2% increase over the existing DA/DR rate to compensate for price rise.
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The decision is estimated to place an additional financial burden of ₹6,791.24 crore per annum on the exchequer.
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The increase will benefit about:
○ Employees: 50.46 lakh
○ Pensioners: 68.27 lakh
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The enhancement has been implemented in line with the accepted formula recommended by the 7th Central Pay Commission.
Also Read: Govt. Revises Variable Dearness Allowance Rates, Effective 1 April 2026