Cabinet raises Dearness Allowance and Dearness Relief by 2 percentage points to 60% from 1 January 2026
The Union Cabinet on 18 April 2026 approved an additional instalment of Dearness Allowance for Central Government employees and Dearness Relief for pensioners from 1 January 2026, raising the rate by 2% over the existing 58% of basic pay/pension.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi on 18 April 2026 approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1 January 2026. The instalment is an increase of 2% over the existing rate of 58% of basic pay or pension, to compensate for price rise. The combined cost to the exchequer is ₹6,791.24 crore a year, and the decision benefits about 50.46 lakh Central Government employees and 68.27 lakh pensioners. The increase follows the accepted formula based on the recommendations of the 7th Central Pay Commission.
Key facts
- Effective from
- 1 January 2026
- Increase
- 2% over existing 58% of basic pay/pension
- Annual cost
- ₹6,791.24 crore (DA + DR)
- Beneficiaries
- ~50.46 lakh employees; ~68.27 lakh pensioners
- Basis
- Formula based on 7th Central Pay Commission recommendations
Practice MCQs 2 questions
The DA/DR instalment approved by the Cabinet on 18 April 2026 raised the rate by 2% over an existing rate of what percentage of basic pay/pension?
Show answer
Correct answer: D — 58%
The increase is 2% over the existing rate of 58% of basic pay/pension.
The formula used to revise Dearness Allowance for Central Government employees, as cited in the April 2026 Cabinet decision, is based on the recommendations of:
Show answer
Correct answer: B — 7th Central Pay Commission
The Cabinet release says the increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.