The Union Cabinet has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR), providing a financial boost to central government employees and pensioners. The move is expected to benefit more than 1.17 crore people across the country.
KHABAR365 NEWS NETWORK
In a significant decision affecting millions of households, the Union Cabinet has cleared a 3% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners.
With the latest revision, the DA and DR rates will rise from 60% to 63%, offering additional financial support to employees and retirees as they cope with rising living expenses. The revised rates will take effect from July 1, 2026, making beneficiaries eligible for arrears from that date.
The decision is expected to benefit around 48.54 lakh central government employees and 68.71 lakh pensioners, taking the total number of beneficiaries to more than 1.17 crore.
Dearness Allowance is revised periodically to offset the impact of inflation on salaries, while Dearness Relief performs a similar function for pensioners. The latest increase follows the government’s established mechanism for adjusting allowances in line with changes in the cost of living.
The move is expected to increase disposable income for millions of families and provide a boost to consumer spending during the festive season. Economists believe the additional purchasing power could have a positive effect on retail markets and other consumer-driven sectors of the economy.
Khabar365 Takeaway
The 3% DA and DR hike will put more money in the hands of over 1.17 crore employees and pensioners. Beyond providing personal financial relief, the decision could also help stimulate consumer spending and support economic activity in the months ahead.