Union Cabinet approved the release of an additional installment of Dearness Allowance increase of 3% over the existing rates of 60% of the Basic Pay/Pension

Newdelhi:28/10/26:The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi,  today has approved the release of 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 for the price rise.

The combined impact on the exchequer from the increase in both Dearness Allowance and Dearness Relief would be Rs. 10,016.10 crore per annum.  This will benefit about 48.54 lakh Central Government employees and 68.71 lakh pensioners. This increase follows the accepted formula, based on the recommendations of the 7th Central Pay Commission.