Cabinet Approves 3% Hike in Dearness Allowance for Central Government Employees

The Union Cabinet approved a 3% increase in dearness allowance (DA) and dearness relief (DR) on Wednesday, October 28, 2026. Information and Broadcasting Minister Ashwini Vaishnaw announced the decision, stating it was cleared by the Cabinet headed by Prime Minister Narendra Modi ahead of Diwali.

According to official announcements, the hike is expected to benefit over 1.17 crore individuals, specifically comprising 48.54 lakh central government employees and 68.71 lakh pensioners.

Additional Cabinet Approvals

During the same briefing, the Union Cabinet cleared several other major policy measures and financial allocations:

• Container Manufacturing Promotion Scheme (CMPS): Approved with a budgetary outlay of ₹10,000 crore up to fiscal year 2040 to support a globally competitive container manufacturing ecosystem in India.
• Pradhan Mantri Viksit Gram Swaraj Yojana: Allocated ₹7,395 crore. Minister Vaishnaw described this initiative as a shift from prescription-based schemes toward a capacity-building and local-level planning model.

Verification and Next Steps

Beneficiaries and interested citizens can verify official updates and detailed notifications through official government portals and announcements released by the Ministry of Information and Broadcasting. Further implementation timelines and formal orders regarding the DA and DR disbursement are expected to be issued through respective administrative departments.