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.
Reference:
You may also like
-
India Ranks First Among 41 Markets in Swedish Global Business Climate Survey 2026
-
India’s Semiconductor Market Could Cross US$200 Billion by 2035 as Domestic Demand Accelerates
-
Pace Robotics Moves Construction Automation From Pilot Stage to Commercial Deployment
-
Hindustan Shipyard Docks Three Vessels Simultaneously in Precision Engineering Milestone
-
BCCL Dispatches First Rake From 5-MTPA Maheshpur Rapid Loading System
