Modi Cabinet approves 3% DA Hike for 48.54 Lakh Central Govt Employees, 68.71 lakh pensioners
Babushahi Bureau
New Delhi, October 28, 2026 (ANI): The Union Cabinet on Wednesday approved a 3 per cent increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, raising the rates from 60 per cent to 63 per cent of basic pay and pension, respectively.
The revised rates will be effective retrospectively from July 1, 2026, providing inflation-linked relief to approximately 48.54 lakh serving Central Government employees and 68.71 lakh pensioners.
According to the government, the combined annual financial implication of the increase will be Rs 10,016.10 crore.
The additional instalment of DA and DR has been approved in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
Dearness Allowance is provided to serving government employees to help offset the impact of rising prices on their cost of living. Dearness Relief serves a similar purpose for pensioners by helping protect the purchasing power of their pension income.
With the latest revision, eligible employees and pensioners will receive an additional three percentage points over the previous rate. Since the increase takes effect from July 1, eligible beneficiaries will be entitled to the revised rates from that date.
The decision is part of the Centre’s periodic revisions of inflation-linked benefits for its employees and pensioners.