Cabinet approves 3% DA hike for central employees, pensioners
In short
The Cabinet approved a 3% rise in dearness allowance for central government employees and pensioners. The change covers 48.54 lakh serving employees and 68.71 lakh pensioners, and one report says the rate goes from 60% to 63% from July 1, 2026.
This matters for government pay and pensions because take-home income will go up. The reporting does not state the full cost to the government or any other changes beyond the allowance increase.
What the reporting says
The Cabinet approved a 3% increase in dearness allowance for central government employees and pensioners, with the revised rates effective retrospectively from July. The reported increase will cover 48.54 lakh serving employees and 68.71 lakh pensioners, and one source says DA and DR will rise from 60% to 63% of basic pay and pension. What is not stated is the exact meeting date or the total fiscal cost.
Why it matters
The Cabinet has approved a 3% increase in dearness allowance for central government employees and dearness relief for pensioners. The reported move covers 48.54 lakh serving employees and 68.71 lakh pensioners, with revised rates applied retrospectively from July; one report says the rate rises from 60% to 63% of basic pay and pension. The direct effect is higher pay and pensions, while the total budget impact is not stated.