New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, 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 increase raises DA and DR from the existing 60% to 63% of basic pay and pension, respectively. The move aims to compensate employees and pensioners for rising prices.
Over 1.17 Crore Beneficiaries
The increase is expected to benefit approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners.
According to the government, the combined annual impact on the exchequer will be Rs 10,016.10 crore.
The revision follows the accepted formula based on the recommendations of the 7th Central Pay Commission.
The revised rates will apply retrospectively from 1 July, 2026.
