Signal Desk · Markets

Cabinet approves 3% DA, DR hike for central staff

2026-10-28 · 3 sources · Business Standard Finance

In short

The Union Cabinet approved a 3% increase in dearness allowance and dearness relief for central government staff and pensioners. A publisher summary said Ashwini Vaishnaw said DA and DR would rise from 60% to 63% of basic pay and pension, from July 1, 2026.

This matters because it should raise pay and pension amounts for central government employees and retirees. The reporting does not say how many people will be affected or what it will cost.

What the reporting says

The Union Cabinet approved a 3% hike in dearness allowance and dearness relief for central government staff and pensioners, according to a publisher summary citing Union minister Ashwini Vaishnaw. The increase would take DA and DR from 60% to 63% of basic pay and pension, with effect from July 1, 2026. The immediate effect on payouts is clear, but the reporting does not say how many beneficiaries there are or the fiscal cost.

Why it matters

The Union Cabinet approved a 3% increase in dearness allowance and dearness relief for central government staff and pensioners, with the rise reported as taking effect from July 1, 2026. The update would move DA and DR from 60% to 63% of basic pay and pension, according to the publisher summary citing Ashwini Vaishnaw. The reporting does not state the total number of beneficiaries or the budget impact.

Touches: Government, Markets

Sources