The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved an additional 3 per cent instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2026.
With this increase, DA and DR will rise from the existing rate of 60 per cent to 63 per cent of Basic Pay and Pension, respectively. The move aims to compensate employees and pensioners for the impact of rising prices.
According to the government, the combined annual financial impact of the increase on the exchequer will be Rs 10,016.10 crore.
The decision is expected to benefit around 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.
-PIB
