Central Government Employees Get Festive Cheer as Cabinet Clears 3% DA Hike

The Union Cabinet has approved a 3 per cent Dearness Allowance hike for central government employees under the July 2026 revision, following the previous increase announced in April.

Post Published By: Pradeep Tripathi

Updated : 28 October 2026, 4:21 PM IST

Cabinet approves three per cent DA hike for employees (Img: X)

New Delhi:  The Union Cabinet on Wednesday approved a 3 per cent increase in Dearness Allowance (DA) for central government employees, offering financial relief amid rising living costs. The decision relates to the July 2026 revision and follows the previous increase announced in April.

The latest hike comes after the government raised DA and Dearness Relief (DR) by 2 percentage points earlier this year, taking the allowance for central government employees to 60 per cent of basic pay. The latest revision is part of the government's twice-yearly adjustment to help employees and pensioners cope with inflation.

DA revised twice a year to offset inflation

Dearness Allowance is paid to serving central government employees as a percentage of their basic salary. Dearness Relief is the corresponding benefit provided to pensioners.

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The government generally revises DA and DR twice a year, with changes applicable to the January-June and July-December periods. These adjustments are intended to cushion the impact of rising prices on the incomes of government employees and pensioners.

Latest increase follows April revision

The Cabinet had approved a 2 per cent increase in DA and DR in April 2026, taking the DA rate to 60 per cent of basic pay. The latest 3 per cent increase marks the next revision in the government's allowance cycle.

The revised allowance is expected to provide additional support to employees as household expenses remain a concern. The amount an employee receives will depend on their basic pay and the applicable DA rate.

What the DA hike means for employees

Since DA is calculated as a percentage of basic pay, an increase in the rate raises the allowance component of an employee's monthly salary. The actual financial benefit will vary according to the employee's pay level.

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Dearness Relief serves a similar purpose for pensioners, helping them manage the effect of inflation on their regular income.

The government's latest decision is part of its periodic adjustment of benefits for central government employees and pensioners in response to changing living costs.