- 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.
-
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
India Could Gain If AI Trade Unwinds, US Midterms May Hurt Markets: Ramesh Damani -
'Switch Off The Noise, Focus On Earnings': Raamdeo Agrawal's Advice To Investors -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Courage, Not Tech, Will Decide Corporate Winners In The AI Era: Harvard Professor -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
"I Am A Material Man In A Material World': Quantum Advisors' Ajit Dayal On NDTV Profit Ignite
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.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
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.
