DA hike: Cabinet raises DA and DR by 3 points to 63% from July 2026
Why in the news
The Union Cabinet, chaired by Prime Minister Narendra Modi, on 28 October 2026 approved an extra instalment of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, lifting the rate by 3 percentage points.
Key facts
- New rate: 63% of basic pay/pension, up from 60%.
- Effective date: 1 July 2026 (retrospective).
- Annual cost: Rs 10,016.10 crore for DA and DR together.
- Beneficiaries: about 48.54 lakh employees and 68.71 lakh pensioners.
- Basis: formula accepted on the recommendations of the 7th Central Pay Commission.
Snapshot
| Item | Before | After |
|---|---|---|
| DA (employees) | 60% | 63% |
| DR (pensioners) | 60% | 63% |
About DA and DR
Dearness Allowance is paid to serving employees, and Dearness Relief to pensioners, to offset the rise in cost of living caused by inflation. Both are expressed as a percentage of basic pay or basic pension and are revised periodically under the Pay Commission formula.
Exam angle
- DA is paid to employees; DR to pensioners.
- Remember: 60% to 63%, from 1 July 2026, Rs 10,016.10 crore a year.
- Beneficiaries: 48.54 lakh employees, 68.71 lakh pensioners.