
The Union Cabinet has approved an additional installment of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective from January 2026.
The increment represents a 2% increase over the existing rate of 58% of the basic pay or pension.
The move aims to provide compensation against price escalation.
The total financial impact on the exchequer due to the increase in DA and DR is estimated at ₹6,791.24 crore per annum.




