DA Hike 2026: Central Government DA and DR Rise to 63% from July 1

What changed in the October 2026 DA announcement?

On 28 October 2026, the Union Cabinet approved an additional 3 percentage points of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. The revised rate is 63% of basic pay or basic pension, up from 60%, with effect from 1 July 2026.

This is a decision about the allowance rate, not a 3% increase in everyone's total salary. The official announcement says the revision follows the accepted formula based on the Seventh Central Pay Commission.

How much extra DA will an employee receive?

For a straightforward illustration, multiply monthly basic pay by 3% to find the increase in DA at the same basic-pay level:

• Basic pay ₹30,000: DA at 60% = ₹18,000; DA at 63% = ₹18,900; increase = ₹900 per month.
• Basic pay ₹50,000: DA at 60% = ₹30,000; DA at 63% = ₹31,500; increase = ₹1,500 per month.

These are calculations of the DA component alone. They are not take-home-pay estimates. Other salary components, deductions and any changes in basic pay can affect the final payslip.

How does Dearness Relief affect pensioners?

Dearness Relief is the corresponding inflation-related increase for eligible Central Government pensioners. For example, at a basic pension of ₹20,000, DR at 60% is ₹12,000; DR at 63% is ₹12,600. That is ₹600 more per month in DR, assuming the same basic pension.

The published Cabinet decision refers to central government employees and pensioners. It should not be read as automatically changing the rates for every state government employee or every pension arrangement.

Will employees and pensioners receive arrears?

The approved effective date is 1 July 2026, earlier than the 28 October announcement. That means the revised entitlement is measured from July, but the official Cabinet release does not specify the salary or pension payment date or an exact arrears-disbursement schedule.

To estimate a possible difference for any eligible months not yet paid at the revised rate, multiply the monthly DA or DR increase by the number of applicable months. For ₹30,000 basic pay, three months of difference would be ₹900 × 3 = ₹2,700. This is an illustration, not a confirmed amount or date for an individual's arrears.

Check the later implementing order, your payroll office or your pension-disbursing authority before assuming a specific credit date.

How many people are expected to benefit?

According to the Ministry of Finance release, the increase is expected to benefit about 48.54 lakh Central Government employees and 68.71 lakh pensioners. The government estimates a combined annual impact of ₹10,016.10 crore for the DA and DR increase.

Source note: This article reports the Union Cabinet approval published by the Press Information Bureau on 28 October 2026. Payment timing and individual eligibility should be checked against the relevant implementing instructions when issued.