The Union Cabinet has approved a 3% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from 1 July 2026.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2026 representing an increase of 3% over the existing rates of 60% of the Basic Pay/Pension, to compensate against price rise.
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs.10,016.10 crore per annum. This will benefit about 48.54 lakh Central Government employees and 68.71 lakh pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
