NEW DELHI: The Union Cabinet on Wednesday approved a 3 per cent hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, benefiting over 1.16 crore people ahead of the festive season.The increase will be effective from July 1, 2026, PTI reported.The latest revision follows a 2 per cent hike approved by the Cabinet in April, which took the DA and DR rate to 60% of basic pay and pension, respectively.
The Union Cabinet has made 4 decisions on the occasion of Diwali.
The government revises DA and DR twice a year, in January and July, to help employees and pensioners cope with inflation. The latest announcement pertains to the July 2026 DA revision for central government employees.DA is a cost-of-living adjustment paid to government employees as a percentage of basic pay. DR is the corresponding benefit for pensioners. Both are intended to offset the impact of rising prices.
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