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Cabinet Approves 3% DA Hike; Central Government Allowance Rises to 63%

vishal kumar
1 min read
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File photograph of Prime Minister Narendra Modi with Finland's President Alexander Stubb at the Raisina Dialogue in March 2026
File photo: PMO/PIB, March 5, 2026, distributed under GODL-India. This is not a photograph of the October 28 Cabinet decision.

New Delhi, October 29, 2026: The Union Cabinet has approved a three-percentage-point increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2026. The revision raises the rates from 60% to 63% of basic pay or pension.

According to the Prime Minister’s Office, the decision is expected to benefit about 48.54 lakh central government employees and 68.71 lakh pensioners. The government estimates the combined annual cost to the exchequer at ₹10,016.10 crore.

What the decision means

DA and DR are periodic adjustments intended to help government employees and pensioners cope with price rises. The latest increase follows the formula based on recommendations of the Seventh Central Pay Commission. Individual changes in monthly payments will depend on the employee’s basic pay or the pension amount used for calculation.

Sources: Prime Minister’s Office — official Cabinet announcement; The Times of India — October 28, 2026 report.

Featured image credit: Prime Minister’s Office/Press Information Bureau image distributed under the Government Open Data License–India. This is a file photograph of Prime Minister Narendra Modi at the Raisina Dialogue on March 5, 2026, not a photograph of the October 28 Cabinet decision. See the image source and licence details.

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