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Central Government Employees, Pensioners to Get 3% DA Hike

Union Cabinet approves increase in Dearness Allowance and Dearness Relief, effective July 1, 2026.

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Two hands counting a stack of Indian 500 rupee banknotes.
The Union Cabinet's decision to increase Dearness Allowance and Dearness Relief for central government employees and pensioners.
Key Points

The Union Cabinet has approved a 3% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2026. This aims to offset the impact of rising prices.

  • DA and DR will increase by 3% from the current 60% to 63%.
  • The hike is effective from July 1, 2026.
  • The decision impacts approximately 48.54 lakh employees and 68.71 lakh pensioners.
  • The annual financial cost to the exchequer is Rs 10,016.10 crore.
  • The increase follows the 7th Central Pay Commission's recommendations.

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved an additional 3 per cent instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2026.

With this increase, DA and DR will rise from the existing rate of 60 per cent to 63 per cent of Basic Pay and Pension, respectively. The move aims to compensate employees and pensioners for the impact of rising prices.

According to the government, the combined annual financial impact of the increase on the exchequer will be Rs 10,016.10 crore.

The decision is expected to benefit around 48.54 lakh Central Government employees and 68.71 lakh pensioners.

The increase has been approved in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

Published: Wednesday, 28 October 2026 | 6:47 PM IST

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