Signal Desk · Economy

Centre raises DA and DR by 3 percentage points from July 1

2026-11-12 · 1 source · Mint Money

In short

The Centre raised dearness allowance and dearness relief by 3 percentage points, from 60% to 63%, effective July 1. The move is for more than 1 crore employees and pensioners.

Several states also announced higher DA and arrears payments. The exact payment method changes from state to state.

What the reporting says

The Centre raised dearness allowance and dearness relief by 3 percentage points to 63% from 60%, effective July 1, benefiting more than 1 crore employees and pensioners. Several states also announced DA increases and arrears payments, with payment arrangements varying by state. The reported increase comes ahead of the festive period and is meant to boost monthly payouts and backdated dues for eligible recipients.

Why it matters

The Centre’s 3-point DA and DR hike lifts pay and pension payouts for more than 1 crore employees and pensioners from July 1. The summary also says several states have announced similar increases and arrears, though payment arrangements differ by state. The move matters for government wage bills, household incomes and state finances, especially where arrears are being settled.

Touches: Economy, Government

Sources