Cabinet Approves 3% Hike in Dearness Allowance for Central Government Employees

• The Union Cabinet approved a 3% increase in Dearness Allowance for central government employees and pensioners.
• The hike will be effective from July 1, 2026.
• This adjustment elevates the DA and DR from 60 to 63 percent of basic pay and pension.
• The increase will benefit 48.54 lakh employees and 68.71 lakh pensioners, totaling over 1.17 crore beneficiaries.
• The move was described as a 'Diwali gift from PM Modi'.