Centre announces 3% DA hike for govt employees, pensioners ahead of Diwali

The 3% DA hike (Dearness Allowance), with effective from July 1, 2026, will benefit about 1.16 crore people. The central government has approved an increase in Dearness Allowance (DA) and Dearness Relief (DR) by three per cent, effective from July 1 this year, Union minister Ashwini Vaishnaw said on Wednesday.Union Minister for Railways, Information & Broadcasting, and Electronics and Information Technology Ashwini Vaishnaw (AN/File)The DA for Central Government employees and DR for pensioners are set to increase from 60 per cent to 63 per cent of basic pay or pension, effective July 1, 2026, said Vaishnaw, announcing the hike.Over 1 crore employees, pensioners to benefitThe increase in DA and DR will have a combined annual financial implication of ₹10,016 crore for the government exchequer, he said, adding that it is expected to benefit around 48 lakh Central Government employees and 68 lakh pensioners. The revision is aimed at providing relief against rising prices by adjusting the allowances paid to serving employees and pensioners.The hike will also revise DA rates for employees under the 6th and 5th Central Pay Commission pay scales. For those under the 6th CPC, DA will rise from 262 per cent to 269 per cent of basic pay, an increase of seven percentage points. For employees under the 5th CPC, the allowance will increase from 483 per cent to 497 per cent of basic pay, a rise of 14 percentage points. The revised rates will be effective from July 1, 2026.The increase in DA and DR will have a combined annual financial implication of ₹10,016 crore for the government exchequer. It is expected to benefit around 48 lakh Central Government employees and 68 lakh pensioners. The revision is aimed at providing relief against rising prices by adjusting the allowances paid to serving employees and pensioners.The government also approved allocation of ₹7,395 crore for PM Viksit Gram Swaraj Yojana among other Cabinet decisions.Container manufacturing promotion scheme worth ₹10,000 crore, Khelo India Sports Goods and Manufacturing scheme worth ₹1,856 crore were also part of the list of Cabinet decisions.Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More