In a significant move to address the rising cost of living, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 3% increase in the Dearness Allowance (DA) for central government employees and pensioners. This decision, effective from July 1, 2026, is expected to benefit over 1.16 crore people, including 48 lakh central government employees and 68 lakh pensioners. The financial implications of this decision are estimated at ₹10,016 crore, aimed at assisting employees and pensioners in managing the effects of inflation. The hike, which will raise the DA from 60% to 63%, is part of a broader policy aimed at providing financial relief to public sector workers and pensioners.
