The Union Cabinet announced on 28 October 2026 the release of an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. This represents a 3% increase over the previous rate of 60% of Basic Pay or Pension to help offset price rises. The decision takes effect from 1 July 2026 and will benefit approximately 48.54 lakh employees and 68.71 lakh pensioners. The annual cost to the government is estimated at Rs.10,016.10 crore.
Key points
- Effective from 1 July 2026
- 3% increase over existing 60% rates of Basic Pay/Pension
- Benefits 48.54 lakh Central Government employees
- Benefits 68.71 lakh pensioners
- Annual exchequer impact: Rs.10,016.10 crore
When it applies
- release of additional instalment of DA and DR
Who it affects
- Central Government employees and pensioners
Refers to
- 7 th Central Pay Commission