The Modi government’s cabinet has made a major announcement for government employees. The central government cabinet has approved a 3 percent increase in dearness allowance (DA) and dearness relief (DR). This increased allowance will be effective from July 1, 2026. This decision will benefit more than 11.6 million central government employees and pensioners. This is a Diwali gift for government employees.

DA and DR have been increased by 3%, and this increased rate will be applicable from July 1, 2026. This may increase the monthly salary of eligible employees, while the monthly pension of pensioners may increase.

How much will the salary and pension increase?

The exact financial benefit of DA and DR increases depends on the employee's basic salary or applicable pension. Therefore, not all employees or pensioners will receive the same amount.

Will the arrears from July be received?
Once the DA increase is implemented from July 1, 2026, eligible employees and pensioners may receive their arrears from that time. However, the exact amount of arrears, the distribution date, and the revised rates will only be clear after an official order.

PC: AAJ TAK