Central government employees and pensioners have received a major financial update as the Union Cabinet has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR). With this revision, the DA rate has increased from 60% to 63% of basic pay, providing additional financial support amid rising living costs.
The revised rates will be applicable retrospectively from July 1, 2026.
DA Increased From 60% to 63%
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the additional DA instalment on October 28, 2026.
The increase follows the existing formula based on the recommendations of the 7th Central Pay Commission. It applies to central government employees as well as pensioners receiving Dearness Relief.
More Than 1.17 Crore Employees and Pensioners to Benefit
According to the government announcement, the decision will benefit approximately:
- 48.54 lakh central government employees.
- 68.71 lakh pensioners.
The combined annual financial impact of the DA and DR increase on the government treasury will be approximately ₹10,016.10 crore.
How Much Will Monthly Salary Increase?
The additional 3% DA will be calculated on an employee’s basic salary.
| Basic Salary | Previous DA (60%) | New DA (63%) | Monthly Increase |
|---|---|---|---|
| ₹18,000 | ₹10,800 | ₹11,340 | ₹540 |
| ₹25,500 | ₹15,300 | ₹16,065 | ₹765 |
| ₹35,400 | ₹21,240 | ₹22,302 | ₹1,062 |
| ₹50,000 | ₹30,000 | ₹31,500 | ₹1,500 |
The actual salary increase will depend on the employee’s basic pay.
Will Employees Receive DA Arrears?
Since the revised DA rate is effective from July 1, 2026, eligible employees will receive arrears for the applicable period according to the government’s payment arrangements.
Pensioners will also benefit from the corresponding increase in Dearness Relief.
What Should Employees Expect Next?
The latest 3% increase provides additional relief to central government employees and pensioners. Attention will now turn towards future DA revisions and developments under the 8th Pay Commission.
For now, the revised DA rate of 63% is officially approved, bringing relief to millions of central government employees and retired pensioners.
