Cabinet Decision: Diwali Gift for Central Employees, DA Raised From 60% to 63%; Effective 1 July 2026, Arrears Expected
The Union Cabinet on 28 October 2026 approved a 3 per cent increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners. Union Minister Ashwini Vaishnaw said DA and DR will rise from 60% to 63%. The increase will apply from 1 July 2026. About 48.54 lakh central employees and 68.71 lakh pensioners will benefit. The government will bear an additional annual expenditure of Rs 10,016 crore.
Key Points of the Decision
| Detail | Information |
|---|---|
| Increase | 3 percentage points (60% to 63%) |
| Effective date | 1 July 2026 |
| Beneficiaries | 48.54 lakh employees and 68.71 lakh pensioners |
| Additional annual cost | Rs 10,016 crore |
| Previous revision | 2% approved in April 2026; DA from 58% to 60% |
| Basis | Formula based on 7th Central Pay Commission recommendations |
How Much Benefit: Examples
| Basic pay (monthly) | Monthly increase at 3% DA | New DA amount (63%) |
|---|---|---|
| ₹30,000 | ₹900 | ₹18,900 |
| ₹50,000 | ₹1,500 | ₹31,500 |
| ₹1,00,000 | ₹3,000 | ₹63,000 |
Other Cabinet Decisions
- Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY): outlay of Rs 7,395.55 crore for 2026-27 to 2030-31; Centre's share Rs 4,869.48 crore and states' Rs 2,526.07 crore. About 32 lakh elected representatives and functionaries of over 2.55 lakh panchayats will get training.
- Container Manufacturing Promotion Scheme: Rs 10,000 crore.
- Khelo India Sports Goods Manufacturing Scheme: Rs 1,856 crore.
For Rajasthan Employees
- This increase is for central employees and pensioners. The DA of Rajasthan state employees is decided by the state government's separate order.
- As per a report, orders like DA during the panchayat elections need the State Election Commission's approval.
Important Links
Frequently Asked Questions (FAQ)
What is the new DA?
63%, earlier it was 60%.
From when does the increased DA apply?
From 1 July 2026.
How many people will benefit?
48.54 lakh employees and 68.71 lakh pensioners.
Note: This is based on news reports and public government information. Dates, amounts and rules can change, so please confirm with the official website or the concerned office before acting. Emitrawala.com is not a government website.
