The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 3-percentage-point increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2026.
Key highlights
- DA/DR increased: From 60% to 63% of basic pay or eligible basic pension.
- Beneficiaries: Approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners.
- Annual financial impact: ₹10,016.10 crore.
- Arrears: Eligible employees and pensioners will receive payments calculated from July 1, 2026, according to the applicable payment schedule.
