Centre approves 3% dearness allowance increase effective July 1, 2026
The Union Cabinet, led by Prime Minister Narendra Modi, has approved a 3% increase in Dearness Allowance for Central Government employees and Dearness Relief for pensioners, effective July 1, 2026. This adjustment raises the rates from 60% to 63% of Basic Pay and Pension, respectively. The government stated that this decision aims to help employees and pensioners cope with rising prices, with an estimated annual financial impact of Rs 10,016.10 crore. Approximately 48.54 lakh employees and 68.71 lakh pensioners are expected to benefit from this increase, which follows the formula established by the 7th Central Pay Commission.
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