The DA/DR hike will be calculated as due from July 1, 2026. (Image Source: Pixabay)
\n\nThe Union Cabinet on Wednesday approved a 3 per cent increase in Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners, providing a festive boost ahead of Diwali. The revision raises the DA rate from 60 per cent to 63 per cent of basic pay and will be effective retrospectively from July 1, 2026. The government has earmarked Rs 10,016 crore for the DA and DR revision, according to the announcement. The increase is expected to benefit approximately 48 lakh Central government employees and 68 lakh pensioners.
\n\nThe Cabinet also cleared three major development initiatives covering domestic container manufacturing, sports goods production and rural governance. The total value of the four approvals stands at Rs 29,267 crore, with the schemes aimed at supporting manufacturing capacity, strengthening local institutions and improving India's industrial ecosystem.
\n\nDA Hike 2026: What Changes For Employees And Pensioners?
\n\nThe latest revision follows the established formula based on the recommendations of the 7th Central Pay Commission. With the increase, eligible employees will receive DA at 63 per cent of their basic pay, while pensioners will receive DR at…
Original source: https://www.timesnownews.com/business-economy
