Central Government Approves 3% DA Rise for 4.8 Million Employees
TL;DR
- 3% increase in dearness allowance effective July 1
- Benefit covers over 1 crore staff and pensioners
- Annual cost to exchequer about ₹10,016 crore
- DA and DR rise from 60% to 63% of basic pay
- Decision follows 7th Central Pay Commission recommendations
The Union Cabinet approved a 3% increase in dearness allowance for central government employees, effective July 1. The move also raises dearness relief for pensioners. The adjustment will benefit more than 1 crore employees and pensioners. The dearness allowance and relief will rise from 60% to 63% of basic pay. The annual impact on the exchequer is estimated at about ₹10,016 crore.
Why It Matters
The hike in dearness allowance and relief directly affects a large segment of Indian‑American professionals who work for the U.S. government or its agencies, ensuring their pay aligns with inflation and cost of living adjustments. It also reflects the Indian government’s ongoing efforts to support public sector workers, which can influence diaspora perceptions of India’s commitment to its citizens abroad.
Oct 28, 2026 · Updated 10/29/2026, 3:48:49 AM · Reported with: Hindustan Times, Times of India (India)
Sources (2)
NRI Bytes writes its own articles from the reporting below.
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