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3% DA Hike Approved: Central Government Employees to Get 63% DA

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The Union Cabinet approves a 3-percentage-point DA hike for central government employees and pensioners, effective July 1, 2026.Centre Approves 3% DA Hike for Government Employees and Pensioners

NEW DELHI, October 28, 2026: The Union Cabinet on Wednesday approved an additional instalment of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, providing a three-percentage-point increase effective from July 1, 2026.

According to an official announcement issued by the Press Information Bureau (PIB), the increase raises the DA and DR rates from 60% to 63% of basic pay and pension, respectively.

The decision is intended to help employees and pensioners offset the impact of rising prices on household expenses.

More than 117 lakh beneficiaries

The government said the decision would benefit approximately 48.54 lakh central government employees and 68.71 lakh pensioners.

The combined annual financial impact on the government exchequer from the DA and DR increase is estimated at ₹10,016.10 crore, according to the official PIB release.

The revision follows the accepted formula based on the recommendations of the Seventh Central Pay Commission.

What does the increase mean?

Dearness Allowance is calculated as a percentage of an employee's basic salary. Dearness Relief serves a similar purpose for eligible pensioners.

The additional three percentage points apply to the existing basic pay or pension, rather than to the entire amount received in a monthly salary or pension payment.

For example, consider an employee whose monthly basic pay is ₹50,000.

At a DA rate of 60%, the allowance would be ₹30,000. At 63%, it would be ₹31,500. This represents an increase of ₹1,500 per month in DA, before any applicable adjustments.

The actual increase for an individual will depend on their basic pay, eligibility and applicable service rules.

Effective date and arrears

Although the Cabinet announced the decision on October 28, 2026, the revised rate is effective from July 1, 2026.

Eligible beneficiaries may therefore receive arrears for the period between the effective date and implementation in their payroll or pension payments, subject to the government's applicable payment arrangements.

Employees and pensioners should check official departmental instructions for the timing and calculation of payments.

Why DA revisions matter

Dearness Allowance revisions are an important part of the compensation framework for central government employees. They are intended to help maintain purchasing power as consumer prices change.

The latest decision provides additional inflation-related support to millions of employees and pensioners. However, its actual impact on household finances will vary according to salary or pension levels, personal expenses and other deductions.

By News National Editorial Team

Source: Press Information Bureau, Government of India, Cabinet approval announcement dated October 28, 2026.

Official announcement: https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2329484&lang=1&reg=3

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