Revised DA/DR Rates Effective from July 1, 2026; Over 1.17 Crore Beneficiaries to Benefit

NEW DELHI, OCTOBER 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional 3 per cent instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, providing financial support to more than 1.17 crore beneficiaries across the country.

According to an official announcement issued by the Press Information Bureau (PIB) on Wednesday, the revised rates will be effective retrospectively from July 1, 2026.

The increase will raise the DA and DR rates from 60 per cent to 63 per cent of basic pay and pension, respectively, in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

The decision is expected to benefit approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners.

The government has estimated an additional annual financial burden of ₹10,016.10 crore on the exchequer due to the increase in both DA and DR.

Dearness Allowance is provided to serving employees to help offset the impact of rising prices, while Dearness Relief offers similar support to pensioners.

As the revised rates are effective from July 1, eligible beneficiaries will receive the applicable arrears for the period covered by the revised rates, subject to the applicable payment arrangements.

The announcement brings additional financial support to Central Government employees and pensioners amid continuing concerns over the cost of living.

Source: Press Information Bureau, Government of India.

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