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( As on 28/10/2026 16:49)

Cabinet approves 3% hike in DA for Central Government Employees and DR for Pensioners

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective July 1, 2026.

The increase of 3% over the existing rate of 60% of basic pay or pension will help compensate employees and pensioners for rising prices, taking the revised DA and DR rate to 63%.

The combined annual financial impact of the increase on the government exchequer is estimated at Rs 10,016.10 crore. The decision is expected to benefit approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners.

The increase has been approved in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.