The Union Cabinet on 28 October 2026 approved a 3-percentage-point rise in Dearness Allowance for central government employees and Dearness Relief for pensioners, taking both from 60% to 63% of basic pay or pension with effect from 1 July 2026.
WHAT HAPPENED
The Union Cabinet approved an additional instalment of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners on 28 October 2026, ahead of Diwali.
KEY FACTS
- Increase: 3 percentage points, from 60% to 63% of basic pay (DA) and basic pension (DR).
- Effective date: 1 July 2026, so arrears are due for the months before the revised rate is paid out.
- Beneficiaries: about 48.54 lakh serving employees and 68.71 lakh pensioners (about 1.17 crore in all).
- Cost: about Rs 10,016.10 crore a year to the exchequer.
- Basis: the accepted formula based on the recommendations of the 7th Central Pay Commission, which links DA to the All-India Consumer Price Index for Industrial Workers (CPI-IW).
- The previous revision, approved in April 2026, raised the rate by 2 points from 58% to 60% with effect from 1 January 2026.
EXAM ANGLE
DA is revised twice a year (1 January and 1 July) and is tied to CPI-IW, which the Labour Bureau compiles. Remember the sequence 58% to 60% (January 2026) to 63% (July 2026).
SOURCE AND DATE
Press Information Bureau release on the Cabinet decision, 28 October 2026, reported by The Tribune, Free Press Journal and others the same day. Added to this collection on 28 October 2026.