In a major relief for government staff and retirees, the Union Cabinet on April 18, 2026 approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners with effect from January 1, 2026. The decision raises DA and DR by 2 percentage points over the existing 58% of basic pay or pension, taking the revised rate to 60% to offset the impact of inflation.
According to the official release, the annual financial impact of the increase on the exchequer will be about Rs 6,791.24 crore. The move is expected to benefit nearly 50.46 lakh Central Government employees and around 68.27 lakh pensioners across the country.
The government said the increase has been approved in line with the accepted formula based on the recommendations of the 7th Central Pay Commission. The latest revision continues the established mechanism through which DA and DR are adjusted periodically to help employees and pensioners cope with rising prices.
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