New Delhi, October 28 (TNA) The Union Cabinet on Wednesday approved a 3% increase in Dearness Allowance (DA) for central government employees and a corresponding rise in Dearness Relief (DR) for pensioners.
The decision will raise DA and DR from 60% to 63% of basic pay and pension, respectively. The revised rates will apply retrospectively from July 1, 2026, providing financial relief to employees and pensioners ahead of Diwali.
The decision will raise DA and DR from 60% to 63% of basic pay and pension, respectively. The revised rates will apply retrospectively from July 1, 2026, providing financial relief to employees and pensioners ahead of Diwali.
Monthly Salary Increase
The increase will directly raise the monthly salary of eligible central government employees. For an employee with a basic salary of ₹18,000, the monthly DA will rise from ₹10,800 to ₹11,340, an increase of ₹540 per month.
Similarly, an employee with a basic salary of ₹35,400 will receive an additional ₹1,062 per month, while the increase for an employee with a basic salary of ₹56,100 will be ₹1,683 per month.
Arrears From July
Since the revised DA is effective from July 1, employees are expected to receive arrears for the applicable period. The timing and method of payment will depend on the government’s formal order and the payroll process of individual departments.
The hike is expected to benefit around 48 lakh central government employees and 68 lakh pensioners. The corresponding increase in DR will provide similar relief to pensioners receiving central government pensions.
Diwali Relief
The DA revision is part of the government’s periodic adjustment of allowances to compensate employees and pensioners for rising living costs. The decision is expected to provide additional purchasing power during the festive season.
The revised allowance will be calculated on basic pay and will not include other salary components such as house rent allowance or transport allowance. The actual increase in take-home salary will therefore vary according to each employee’s pay level and deductions.