Centre Approves 3% DA Hike for Central Government Employees and Pensioners Ahead of Diwali

Ahead of Diwali, the Union Cabinet on Wednesday approved a 3% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners.

According to the official announcement, the decision is expected to benefit over 1 crore employees and pensioners. The revised rates will be applicable for the July to December 2026 period.

Key Highlights of the DA Hike

• Revised Rates: With this approval, DA and DR will increase from the previous 60% to 63% of the basic pay.
• Financial Impact: The combined annual impact on the exchequer is estimated to be Rs 10,016 crore per annum.
• Basis of Decision: The government stated that the increase follows the accepted formula based on the recommendations of the 7th Central Pay Commission.

Practical Implications and Verification

Employees and pensioners can verify the implementation details through official notifications issued by the Ministry of Finance or by checking their respective departmental payroll portals. The increased allowance will be reflected in upcoming salary and pension disbursements as per the applicable payment schedules.