- About 48 lakh central government employees will benefit from the new announcement
- Around 68 lakh pensioners are included in the government's benefit scheme
- The scheme aims to enhance financial support for employees and pensioners
The Cabinet has approved a 3-percentage-point hike in Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners on Oct 28, raising the rates from 60% to 63% of basic pay and pension, respectively. The revision will take effect retrospectively from July 1, 2026, offering relief to government employees and pensioners ahead of Diwali.
The increase is expected to benefit around 48 lakh Central government employees and 68 lakh pensioners. The combined annual financial implication for the exchequer is estimated at Rs 10,016 crore.
-
Can India Mobilise Its Savings To Power Its Own Growth Story? Ben Flags Biggest Challenge -
"I Am A Material Man In A Material World': Quantum Advisors' Ajit Dayal On NDTV Profit Ignite -
Structurally Positive On India In The Long-term:Ben Powell, On NDTV Profit Ignite -
Why Tamannaah Bhatia Is Taking The Long Route To Scale Her Jewellery Business -
'I Am My Own Intern': Tamannaah Bhatia On NDTV Profit Ignite -
Indian Mkt Will Return With The 'Smart Mkt' Story: NSE MD & CEO Ashishkumar Chauhan On NDTV Profit I -
India Lacks An AI Story But Has IT 'Workhorses': Why NSE CEO Sees Foreign Money Returning -
NDTV Profit Ignite 2026 Live Updates: Some Large Caps Have Become Reasonable, Says S Naren -
Gold Price Dips Ahead Of Diwali: Can It Go Lower On Dhanteras? What To Expect -
NDTV Ignite, The Trillion-Dollar Trajectory: India's Road to 2030
The revision follows the accepted formula based on the recommendations of the 7th Central Pay Commission and is intended to help compensate employees and pensioners for rising prices.
For those under the 6th Central Pay Commission (CPC) pay scales, DA and DR have been raised by seven percentage points, from 262% to 269% of basic pay and pension, respectively. For employees and pensioners covered by the 5th CPC pay scales, the rates have increased by 14 percentage points, from 483% to 497%. Both revisions are effective from July 1, 2026.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.