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DA hiked by 3% to 63%: Know the impact of hike on salaries of Level 1-10 central government employees

  • On Wednesday, the Union Cabinet approved a 3% hike in Dearness Allowance and Dearness Relief, raising the rate to 63% effective from July 1, 2026. Broadcasting Minister Ashwini Vaishnaw announced the decision benefiting over 1.17 crore Central Government employees and pensioners.
  • Recommended by the Central Pay Commission, this increase aims to cushion inflation's impact on purchasing power for employees and pensioners. The Central Government periodically adjusts these rates to offset rising living costs.
  • Ahead of Diwali, officials timed the announcement to provide relief to beneficiaries. The calculation relies on the Consumer Price Index for Industrial Workers, which the Labour Bureau releases monthly to track inflation.
  • With this hike, annual exchequer costs total Rs 10,016.10 crore. Separately, the Cabinet approved the Container Manufacturing Promotion Scheme with Rs 10,000 crore outlay and allocated Rs 7,395 crore to the Pradhan Mantri Viksit Gram Swaraj Yojana.
  • Previous revisions climbed from 55% in July 2025 to 58%, then to 60% following the April 18, 2026 adjustment. This pattern reflects the government's ongoing strategy to adjust compensation based on the All India Consumer Price Index.
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<p style="text-align: justify;">Union Information and Broadcasting Minister Ashwini Vaishnav informed about four major decisions of the central government. In which the biggest gift has been given to central employees. Ashwini Vaishnav said that a 3% increase in DA/DR of central employees has been approved, which will now become 63%. This increase will be considered effective from July 1, 2026. He said that 'the decision has been taken by the Pr…

·India
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Times of India broke the news in India on Wednesday, October 28, 2026.
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