Financial Boost for Millions: Union Cabinet Approves 2% DA and DR Hike for Central Govt Employees & Pensioners
Financial Boost for Millions: Union Cabinet Approves 2% DA and DR Hike for Central Govt Employees & Pensioners
New Delhi, April 18 : In a move designed to bring substantial financial relief to over a crore households, the Union Cabinet has officially approved a 2 percent increase in both Dearness Allowance (DA) and Dearness Relief (DR). The decision, announced on Saturday, is poised to directly benefit approximately 50.46 lakh active central government employees and 68.27 lakh pensioners nationwide.
Information and Broadcasting Minister Ashwini Vaishnaw shared the details following a pivotal Cabinet meeting chaired by Prime Minister Narendra Modi. Highlighting the fiscal scope of the rollout, Vaishnaw noted that this combined increment will result in an annual impact of ₹6,791.24 crore on the public exchequer.
Implemented retroactively with effect from January 1, 2026, this additional installment pushes the DA and DR rates from the existing 58 percent to a robust 60 percent of the basic pay and pension. The hike is strategically calculated to offset inflationary pressures and compensate for the rising cost of living.
Furthermore, the adjustment remains strictly in line with the established economic formula recommended by the 7th Central Pay Commission. This timely financial buffer underscores the government's ongoing commitment to safeguarding the real income and purchasing power of its dedicated workforce and esteemed retirees in a fluctuating economic landscape.
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