Centre Announces 3% DA Hike For Central Govt Employees, Pensioners
The DA for Central Government employees and DR for pensioners are set to increase from 60 per cent to 63 per cent of basic pay or pension, effective July 1, 2026.
New Delhi: The Cabinet on Wednesday approved a 3 per cent Dearness Allowance (DAA/DR hike for over 1.16 crore central govt employees/pensioners with effect from July 1, 2026.
The DA for Central Government employees and DR for pensioners are set to increase from 60 per cent to 63 per cent of basic pay or pension, Union Minister Ashwini Vaishnaw said on Wednesday while announcing the hike.
The Union Cabinet chaired by the Prime Minister Narendra Modi approved releasing an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2026 representing an increase of three per cent over the existing rates of 60 per cent of the Basic Pay/Pension, to compensate against price rise.
The combined impact on the exchequer on account of 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 is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.