The Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday (April 18, 2026), approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners. The increase will be effective from January 1, 2026.

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A press release by the PIB stated that the increase will be 2% over the existing rate of 58% of the Basic pay/pension, to compensate against price rise.

The combined impact on the exchequer on account of the increase will be ₹6,791.24 crores. This will benefit about 50.46 lakh government employees and 68.27 lakh pensioners.

This increase is based on the recommendation of the Seventh Central Pay Commission.