DA Hike 2026: The Narendra government ruling at the Center has announced a 3 percent increase in DA for government employees and pensioners before Diwali. The government announced on Wednesday that this 3% increase in DA (Dearness Allowance) will be effective from July 1, 2026.
Union Minister Ashwini Vaishnav said on Wednesday that the Central Government has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR), which will be effective from July 1.
Union Cabinet, chaired by Hon’ble Prime Minister Shri Narendra Modi Ji, approves a 3% hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, from 60% to 63% of basic pay/pension, effective 1 July 2026. The decision will benefit around 48 lakh Central Government employees and 68 lakh pensioners, with an estimated annual exchequer impact of ₹10,016 crore. #CabinetDecisions #DAHike #CentralGovernment
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Along with other Cabinet decisions, the government also approved allocating Rs 7,395 crore for ‘PM Vikas Gram Swaraj Yojana’. The cabinet decisions also include ‘Container Manufacturing Incentive Scheme’ worth Rs 10,000 crore and ‘Khelo India Sports Goods and Manufacturing Scheme’ worth Rs 1,856 crore.
More than 1 crore employees and pensioners will get benefits
He said that the increase in DA and DR will put a total financial burden of Rs 10,016 crore annually on the government exchequer. About 48 lakh central government employees and 68 lakh pensioners are expected to benefit from this. The purpose of this change is to provide relief to employees and pensioners amid rising prices, for which adjustments have been made in the allowances they receive.
Under this increase, there will be a change in DA rates for employees in the 6th and 5th Central Pay Commission (CPC) pay scales. For employees falling under the purview of 6th CPC, DA will increase from 262 percent of basic pay to 269 percent i.e. it will increase by 7 percentage points. At the same time, for employees covered under 5th CPC, this allowance will increase from 483 percent of the basic pay to 497 percent, which is an increase of 14 percentage points. These revised rates will be applicable from July 1, 2026.
This increase in DA and DR will put a total financial burden of Rs 10,016 crore on the government exchequer annually. This is expected to benefit about 48 lakh central government employees and 68 lakh pensioners. The purpose of this change is to provide relief to employees and pensioners amid rising prices, for which adjustments have been made in the allowances they receive.
Along with other decisions of the Cabinet, the government has also approved allocating Rs 7,395 crore for ‘PM Vikas Gram Swaraj Yojana’. The list of cabinet decisions also includes ‘Container Manufacturing Incentive Scheme’ worth Rs 10,000 crore and ‘Khelo India Sports Goods and Manufacturing Scheme’ worth Rs 1,856 crore.