The Union Cabinet, chaired by Prime Minister Narendra Modi, approved an additional instalment of Dearness Allowance for Central Government employees and Dearness Relief for pensioners on October 28, 2026.
The approved increase is 3 percentage points, taking the applicable DA and DR rate from 60% to 63% of basic pay and pension, respectively. The revised rates are effective retrospectively from July 1, 2026.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: Central Government approves a 3-percentage-point increase in DA and DR, raising the rate from 60% to 63%.
Location: New Delhi, India.
Authority/Organisation: Union Cabinet, chaired by Prime Minister Narendra Modi.
Action Taken: Additional DA and DR instalment approved with effect from July 1, 2026.
Impact: Approximately 48.54 lakh employees and 68.71 lakh pensioners are expected to benefit; estimated annual financial impact is ₹10,016.10 crore.
The government said the decision is intended to help employees and pensioners manage the impact of rising prices. The increase follows the accepted formula based on the recommendations of the Seventh Central Pay Commission.
According to the official announcement, approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners are expected to benefit. The combined annual impact on the government exchequer is estimated at ₹10,016.10 crore.
The announcement establishes the revised rate and its effective date. Employees and pensioners should consult the applicable government orders and their department or pension-disbursing authority for individual payment calculations and arrears, where applicable.
Editorial Analysis
Why This Matters
The increase is relevant to millions of government employees and pensioners who rely on salary or pension income to meet regular household expenses. Inflation support: The revision is intended to help offset rising living costs. Employee benefits: Eligible Central Government employees receive a higher DA rate. Pension support: Eligible pensioners benefit from the corresponding DR increase. Household finances: Additional payments may provide some relief for routine expenses, depending on individual entitlement. Public spending: The government has estimated the combined annual financial impact at ₹10,016.10 crore. The actual increase in an individual's monthly payment will depend on the applicable basic pay or pension and relevant service or pension rules.
