The Cabinet on October 28 approved a 3-percentage-point increase in Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners. The revised rates will rise from 60% to 63% of basic pay and pension, respectively.
The increase will take effect retrospectively from July 1, 2026, providing additional financial support to employees and pensioners ahead of Diwali.
Approximately 48 lakh Central government employees and 68 lakh pensioners are expected to benefit from the decision. The combined annual impact on the exchequer has been estimated at Rs 10,016 crore.
The revision follows the accepted formula based on the recommendations of the 7th Central Pay Commission and is aimed at offsetting the effect of rising prices on employees and pensioners.
Revised rates under earlier pay commissions
For employees and pensioners covered by the 6th Central Pay Commission pay scales, DA and DR have been increased by seven percentage points, from 262% to 269% of basic pay and pension, respectively.
Those covered by the 5th Central Pay Commission pay scales will receive a 14-percentage-point increase, taking the rates from 483% to 497%. Both these revisions will also apply from July 1, 2026.
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