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.
Key points
- 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
When it applies
- release of additional DA and DR
Who it affects
- Central Government employees and pensioners
Refers to
- 7 th Central Pay Commission