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Cabinet approves 3% increase in Dearness Allowance and Relief

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.

  • 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
  1. release of additional instalment of DA and DR
  • Central Government employees and pensioners
  • 7 th Central Pay Commission