Cabinet Approves 3% DA Hike For Central Government Employees
What Happened
The Union Cabinet has approved a 3-percentage-point increase in Dearness Allowance (DA) for Central government employees and a corresponding increase in Dearness Relief (DR) for pensioners. The rate will rise from 60% to 63% of basic pay and pension, effective retrospectively from July 1, 2026. Around 48 lakh employees and 68 lakh pensioners are expected to benefit, with the increase estimated to cost the government ₹10,016 crore annually.
Key Takeaways
Central government employees and pensioners will get a 3-point increase in DA/DR to 63%, with the revision taking effect from July 1, 2026.