NEW DELHI, OCTOBER 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2026.

The increase of **3 percentage points will raise DA and DR from 60% to 63%** of Basic Pay and Pension, respectively, providing relief to employees and pensioners against rising prices.

The decision is expected to benefit approximately **48.54 lakh Central Government employees and 68.71 lakh pensioners** across the country.

According to the government, the combined annual financial impact of the increase in DA and DR on the exchequer will be ₹10,016.10 crore.

The increase has been approved in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

The decision is expected to provide financial support to government employees and pensioners amid continuing price pressures.