Cabinet Approves 3% Hike of DA and DR to Central Govt Employees, Pensioners

UdaipurTimes, Oct 28, 2026 - The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, October 28, approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2026 representing an increase of 3% over the existing rates of 60% of the Basic Pay/Pension, to compensate against price rise.

The combined impact on the exchequer on account of increase in both DA and DR would be Rs10,016.10 crore per annum.  This will benefit about 48.54 lakh Central Government employees and 68.71 lakh pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.