New Delhi, April 18 -- The union Cabinet on Saturday approved an additional installment of Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners, offering relief amid rising prices.
Chaired by Prime Minister Narendra Modi, the Cabinet cleared a 2 per cent increase over the existing rate of 58 per cent of basic pay and pension, raising the total DA/DR to 60 per cent with effect from January 1, 2026, the Ministry of Finance statement said here.
The decision will benefit about 50.46 lakh Central government employees and 68.27 lakh pensioners across the country.
The combined financial impact on the exchequer on account of the increase in both DA and DR is estimated at Rs 6,791.24 crore per annum, ac...