On 28 October 2026, the Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Central Government pensioners, enhancing the rate by 3% from 60% to 63% of Basic Pay/Pension.
The revised rates will be effective from 1 July 2026.
Key Highlights:
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The Cabinet has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR).
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The 3% increase will be effective from 1 July 2026, raising the Dearness Allowance (DA) and Dearness Relief (DR) rate from 60% to 63% of Basic Pay/Pension.
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The increase has been granted to compensate employees and pensioners against the impact of price rise and inflation.
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The decision will benefit approximately:
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48.54 lakh Central Government employees; and
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68.71 lakh pensioners.
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The combined annual financial impact on the Government is estimated at ₹10,016.10 crore.
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The increase has been approved in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
Also Read: Cabinet approves 3% Increase in DA and DR
