Cabinet Raises DA to 63% for Central Employees, Pensioners Before Diwaliਕੈਬਨਿਟ ਵੱਲੋਂ ਕੇਂਦਰੀ ਮੁਲਾਜ਼ਮਾਂ ਦਾ ਡੀਏ ਵਧ ਕੇ 63%, ਦੀਵਾਲੀ ਤੋਂ ਪਹਿਲਾਂ ਤੋਹਫ਼ਾ

The Union Cabinet on Wednesday, October 28, 2026, approved a 3 percentage-point increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, lifting both from 60% to 63% of basic pay or pension. The hike takes effect retrospectively from July 1, 2026, just ahead of Diwali.

Information and Broadcasting Minister Ashwini Vaishnaw announced the decision after the Cabinet meeting chaired by Prime Minister Narendra Modi. The Press Information Bureau said it compensates for price rise and follows the accepted formula based on the 7th Central Pay Commission's recommendations.

Who benefits and what does it cost?

About 48.54 lakh central government employees and 68.71 lakh pensioners will benefit, more than 1.17 crore people in all. The combined impact on the exchequer is Rs 10,016.10 crore a year, according to the official release.

Because the revision applies from July 1, employees and pensioners are entitled to arrears for the months since. Moneycontrol reported that the July to October arrears are expected to be paid along with the November salary; the government's release does not itself specify a payment date.

How much more will employees get?

The increase is 3% of basic pay or pension. The Economic Times worked out that an employee with a basic pay of Rs 18,000 (Level 1) sees DA go up by Rs 540 a month. Higher pay levels gain proportionally more, since DA is a percentage of basic pay.

The previous revision, approved in April 2026, had raised DA by two percentage points to 60%, according to Fortune India.

Is this DA hike only for central staff?

Yes. The decision covers central government employees and pensioners. State governments, including Punjab, decide DA for their own employees separately, so this announcement does not automatically change state rates.

What is dearness allowance?

Dearness Allowance is a cost-of-living payment added to basic pay, revised twice a year, to offset inflation. Dearness Relief is the equivalent for retired employees on pension.

What is the new DA rate for central employees?

63% of basic pay, up from 60%, effective July 1, 2026.

How many people get the DA hike?

About 48.54 lakh serving employees and 68.71 lakh pensioners, over 1.17 crore people in total.

When will the arrears be paid?

The release does not give a date. Moneycontrol reported that the July to October arrears are expected with the November salary.