Central Government Employees to Get 3% DA Hike From July 2026
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a 3% hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective July 1, 2026.
The revision will increase DA and DR from 60% to 63% of basic pay and pension, respectively, providing relief against rising prices, the government said in a statement.
The decision is expected to benefit around 48.54 lakh central government employees and 68.71 lakh pensioners.
According to the Press Information Bureau, the combined annual financial impact of the increase on the exchequer will be ₹10,016.10 crore.
The hike has been approved in line with the accepted formula based on the recommendations of the 7th Central Pay Commission.
The additional allowance and relief are intended to help employees and pensioners manage the impact of inflation on household expenses.
