The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners, raising the rate to 60% of the basic pay. The decision will benefit over 1.18 crore people.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2026. It represents an increase of two per cent over the existing rate of 58 per cent of the Basic Pay/Pension, to compensate against price rise.
Details on DA Hike Impact
Briefing about the cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the decision will benefit over 50 lakh Central Government employees and over 68 lakh pensioners. “Another very big decision was taken today. I would like to extend my heartiest congratulations. DA and DR have been increased for all our central government employees and pensioners, which will cost the Government of India a total of Rs. 6,791 crore. Basically, DA and DR will become 60% of the basic pay from January 1, 2026. It has been increased by 2%, from 58% to 60%. It will become 60% of the basic pay. There are a total of about 50 lakh employees and 68 lakh pensioners of the Government of India. This will be a huge benefit for all of them,” he said.
Based on 7th Pay Commission Formula
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, an official release said.
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