Good News for Central Government Employees: DA and DR Hiked by 3%

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 3% hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners. The decision has been taken keeping in view rising living costs and inflation. With this revision, the DA rate has increased from 60% to 63% of basic pay. The hike will be effective from July 1, 2026, making employees and pensioners eligible for arrears for the four months from July to October. The government is expected to credit these arrears along with the upcoming salary and pension payments. Around 48.54 lakh central government employees and 68.71 lakh pensioners are expected to benefit. The additional annual financial burden on the government is estimated at approximately Rs. 10,016.10 crore.

The increase will raise the monthly payments of employees across different pay levels. For instance, an employee drawing a minimum basic salary of Rs. 18,000 under Level 1 will receive DA of Rs. 11,340 instead of Rs. 10,800, resulting in an additional Rs. 540 per month. Employees with a basic salary of Rs. 35,400 will receive an additional Rs. 1,062, while those earning Rs. 50,000 will get an extra Rs. 1,500 per month. Pensioners with a basic pension of Rs. 25,000 will receive an additional Rs. 750. The government has also revised DA rates for employees covered under the 6th and 5th Pay Commissions. For the 6th Pay Commission, the rate has increased from 262% to 269%, while for the 5th Pay Commission, it has risen from 483% to 497%. The announcement is expected to provide financial relief to employees and pensioners awaiting the implementation of the 8th Pay Commission.