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Governance · India

India's Central Government Approves 3% Dearness Allowance Hike for Workers and Pensioners

The Union Cabinet, led by Prime Minister Narendra Modi, approved a 3% increase in the Dearness Allowance (DA) for central government employees and pensioners, effective from July 1, 2026. This move aims to provide financial relief amid rising living costs.

India's Central Government Approves 3% Dearness Allowance Hike for Workers and Pensioners
Author
Democracy News Live Desk
Date
28 Oct 2026
Read
2 min

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.

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