Cabinet approves 3% DA, DR hike for central govt staff, pensioners

Union minister Ashwini Vaishnaw said the increase would take DA and DR from 60 per cent to 63 per cent of basic pay and pension, respectively, with effect from July 1, 2026

The Union Cabinet on Wednesday approved a 3 percentage point increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, benefiting more than 11.6 million people, Union minister Ashwini Vaishnaw said.

 

The increase will take effect from July 1, 2026, raising DA and DR from 60 per cent to 63 per cent of basic pay and pension, respectively.

 

According to figures presented by Vaishnaw, the combined annual cost of the increase to the government exchequer will be ₹10,016 crore.

 

The revision follows the formula based on the recommendations of the 7th Central Pay Commission.

 

The government revises DA and DR twice a year, usually in January and July, to help central government employees and pensioners cope with inflation. 

 

 

DA is paid to serving employees as a percentage of basic pay, while DR is the corresponding benefit for pensioners. Both are intended to offset the impact of rising prices.

 

The previous revision, approved in April 2026, increased DA and DR by 2 percentage points, taking the rate to 60 per cent of basic pay and pension.