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The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional 3 percentage points in Dearness Allowance (DA) and Dearness Relief (DR), increasing the rate from 60% to 63% of basic pay or basic pension, effective from 1 July 2026.
According to the Ministry of Finance’s PIB press release dated 28 October 2026, the revision will benefit approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners.
The combined annual financial impact on the government is estimated at ₹10,016.10 crore.
Source verification: These announcement figures are taken from the supplied PIB screenshot (Release ID 2329485). The corresponding online PIB page could not be independently accessed during verification.
The increase follows the accepted formula based on the recommendations of the 7th Central Pay Commission.
How Much Will Salary and Pension Increase?
DA is calculated on applicable basic pay, while DR is calculated on applicable basic pension.
The additional monthly amount is therefore 3% of basic pay or basic pension, before considering any other consequential changes.
For example, an employee receiving ₹50,000 basic pay would receive ₹1,500 more DA per month. A pensioner receiving ₹30,000 basic pension would receive ₹900 more DR per month.
What Does This Mean for Defence Personnel and Pensioners?
The revision is relevant to Central Government employees and pensioners, including defence-related categories covered by the applicable government orders.
For serving Armed Forces personnel, defence civilians and military pensioners, the precise implementation will follow the relevant instructions issued by the competent authorities.
The Cabinet announcement establishes the revised percentage, but separate orders may be necessary for particular categories.
When Will DA/DR Arrears Be Paid?
The effective date of 1 July 2026 means that eligible employees and pensioners are entitled to the difference arising from the revised rate for the applicable period.
However, the PIB announcement does not specify the date on which revised salary, pension or arrears will be credited.
The actual payment schedule will depend on the subsequent implementation instructions and payroll or pension-disbursement processing.
Is This Increase Related to the 8th Pay Commission?
No. The announced DA/DR revision follows the formula accepted under the 7th Central Pay Commission.
It should not be confused with revised basic pay, pension, fitment factor or other recommendations that may emerge from the 8th Central Pay Commission.
The DA/DR revision and the implementation of a new pay commission are separate processes.
Conclusion
The 28 October 2026 PIB announcement records a 3-percentage-point DA/DR increase from 60% to 63%, effective 1 July 2026.
The next important development for employees and pensioners will be the issue of the relevant implementation orders, particularly those establishing payment and arrears-processing arrangements.
1. Press Information Bureau — Ministry of Finance, 28 October 2026
Cabinet approves Dearness Allowance to Central Government employees and Dearness Relief to Pensioners.
Release ID: 2329485
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2329485
The above release details are based on the supplied screenshot; the online page was not independently accessible.
2. Department of Expenditure — DA Revision Effective 1 January 2026
Office Memorandum dated 22 April 2026 confirming the earlier revision from 58% to 60%.
https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2026-2027/Circular_EnhancementOfDA_%2024042026.pdf
3. Department of Expenditure — Ministry of Finance
https://doe.gov.in/
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