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Cabinet Approves 3% DA, DR Hike for Central Govt Staff, Pensioners
Sentiment: NeutralHigh Priority
What Happened?
The Union Cabinet has approved a 3% increase in Dearness Allowance for central government employees and Dearness Relief for pensioners, effective July 1, 2026. This change will benefit over 11.6 million individuals.
Key points
- The DA and DR will increase from 60% to 63% of basic pay and pension, respectively.
- The annual cost of this increase to the government will be ₹10,016 crore.
- This revision is based on the 7th Central Pay Commission's recommendations.
- DA and DR are revised twice a year, typically in January and July.
- The previous increase in April 2026 raised DA and DR by 2 percentage points.
Key insights
- The increase could lead to improved financial stability for over 11.6 million beneficiaries.
- This adjustment reflects the government's ongoing efforts to address inflation impacts on public sector employees.
- Future revisions may continue to follow inflation trends, impacting government budgeting.
Why it matters
This increase may help central government employees and pensioners manage rising living costs.
Entities
Ashwini Vaishnaw· PersonCentral Government· Organization
Source
Business Standard
