India's Cabinet Raises Dearness Allowance by 3 Points to 63%: About 11.7 Million Employees and Pensioners Benefit, at ₹10,016 Crore a Year
India's Union Cabinet, chaired by Prime Minister Narendra Modi, approved in New Delhi on October 28 an additional instalment of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, raising both by 3 percentage points, from 60% to 63% of basic pay or pension, with effect from July 1, 2026, to compensate against price rise.
The Press Information Bureau said the increase will benefit about 4.854 million central government employees and 6.871 million pensioners, more than 11.7 million people in total, with a combined impact on the exchequer of ₹10,016.10 crore per annum. Because the revision applies from July 1, beneficiaries are also due arrears for the months since.
The bureau said the increase follows the accepted formula based on the recommendations of the 7th Central Pay Commission and linked to the All India Consumer Price Index for Industrial Workers; the previous instalment had set the rate at 60% from January 1, 2026. Rates were also revised for staff under older pay commissions, with DA under the 6th Pay Commission rising from 262% to 269% of basic pay and under the 5th from 483% to 497%, likewise from July 1.
Source: GSM · USA (original Chinese edition)
Photo: 印度新德里莱西纳山北大楼（财政部与内政部所在地）。Pinakpani 摄，CC BY-SA 4.0，经 Wikimedia Commons。 / The North Block on Raisina Hill in New Delhi, India. Photo by Pinakpani, CC BY-SA 4.0, via Wikimedia Commons.
