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DA hike: Cabinet raises DA and DR by 3 points to 63% from July 2026

28 October 20261 min read
NATIONAL AFFAIRSDA hike: Cabinetraises DA and DRby 3 points to 63%from July 202628 October 2026safalsetu.com

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

ItemBeforeAfter
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.

Test yourself

1. After the October 2026 hike, what is the Dearness Allowance rate for central government employees?

DA and DR rose by 3 percentage points from 60% to 63% of basic pay/pension.

2. From which date is the 63% DA/DR rate effective?

The revised rate applies retrospectively from 1 July 2026.

3. What is the combined annual financial implication of the 3-point DA/DR hike?

The combined yearly cost of DA and DR is Rs 10,016.10 crore.

Sources: PIB (Cabinet), ANI