NEW DELHI: The Union Cabinet, headed by Prime Minister Narendra Modi, has approved a 3 percent increase in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners.
The decision was announced by Information and Broadcasting Minister Ashwini Vaishnaw during a media briefing on Wednesday. The hike is effective from July 1, 2026, and is timed ahead of the Diwali festival.
According to the official figures shared following the Cabinet meeting, the revised allowance will benefit a total of 48.54 lakh central government employees and 68.71 lakh pensioners, bringing the combined beneficiary count to over 1.17 crore individuals.
The dearness allowance is periodically revised to offset the impact of inflation on the cost of living for government personnel and retirees. Further details regarding the implementation and disbursement schedule are expected to be released through specific administrative orders.
"The 3 percent hike in dearness allowance and dearness relief ahead of Diwali provides a timely boost to disposable incomes for over 1.17 crore central government employees and pensioners. From a broader economic perspective, such policy measures typically drive consumer spending and retail demand during the festive season, creating positive ripple effects across various domestic business sectors." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
Recommended Reading
Recent StartupLanes Articles
Browse through our 30 latest publications on venture capital, startups, and angel investing.