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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 measure takes effect from 1 July 2026 and will cost the government Rs 10,016.10 crore annually. It benefits approximately 48.54 lakh employees and 68.71 lakh pensioners.

  • Increase: 3% over existing 60% rates of Basic Pay/Pension
  • Effective date: 1 July 2026
  • Beneficiaries: 48.54 lakh employees and 68.71 lakh pensioners
  • Annual cost to exchequer: Rs 10,016.10 crore
  1. release of additional DA and DR
  • Central Government employees and pensioners
  • 7 th Central Pay Commission