NEW DELHI | OCTOBER 28, 2026 | DWEEP TULIKA | NATIONAL NEWS
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, increasing the rates by three percentage points from 60% to 63% of Basic Pay or Pension.
According to a Press Information Bureau (PIB) release issued on October 28, 2026, the increase will be effective from July 1, 2026. The measure is intended to compensate employees and pensioners for rising prices.
3-Percentage-Point Increase in DA and DR
The approved revision raises the existing DA rate for Central Government employees from 60% to 63% of Basic Pay. Dearness Relief for pensioners will also increase from 60% to 63% of their Basic Pension.
The increase is effective retrospectively from July 1, 2026. The announcement confirms the revised rates but does not specify a separate payment date for any arrears arising from the effective date.
Over 1.17 Crore Employees and Pensioners to Benefit
The government estimates that approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners will benefit from the revision.
The combined annual impact on the government exchequer from the increase in DA and DR is estimated at ₹10,016.10 crore, according to the PIB statement.
Based on Seventh Central Pay Commission Formula
The government said the increase follows the accepted formula based on the recommendations of the Seventh Central Pay Commission.
Dearness Allowance is paid to eligible serving employees, while Dearness Relief is provided to eligible pensioners. Both are intended to help offset the effects of rising prices.
The latest approval changes the applicable DA and DR rates to 63%, effective July 1, 2026.
Source: Press Information Bureau, Government of India, Cabinet announcement dated October 28, 2026, Release ID 2329485.
Dweep Tulika | National News