New Delhi, April 18
The Union Cabinet has approved a 2% increase in Dearness Allowance and Dearness Relief for central government employees and pensioners, starting January 1, 2026. This move will help more than 50 lakh employees and 68 lakh pensioners, raising the allowance from 58% to 60% of basic pay or pension.
The announcement came after a Cabinet meeting led by Prime Minister Narendra Modi. Information and Broadcasting Minister Ashwini Vaishnaw said the new rates will cost about ₹6,791 crore each year. This change aims to help with rising living costs and follows the 7th Central Pay Commission’s formula.
“This increase in Dearness Allowance and Dearness Relief is in line with our commitment to support government employees and pensioners in dealing with the impact of inflation,” said Vaishnaw while briefing the media on the Cabinet’s decision.
DA and DR for central government employees and pensioners are regularly updated to maintain financial stability. These changes happen twice a year based on the Consumer Price Index and show the government’s ongoing support for its workforce.
The latest DA and DR rates will provide much-needed relief to millions facing ongoing inflation. The government remains committed to monitoring economic conditions and making necessary adjustments, following established pay commission guidelines to support its personnel.
