The Central Government has increased Dearness Allowance (DA) and Dearness Relief (DR) from 60% to 63%, effective from 1 July 2026. Following the Cabinet’s approval on 28 October 2026, different Government departments began issuing orders to implement the revised rates.
The Ministry of Finance issued the main DA order on 29 October, followed by instructions for Railway employees and a separate Dearness Relief order for Central Government pensioners.
However, an important question remains for serving defence personnel: Has the Ministry of Defence issued its separate DA implementation order for Army, Navy and Air Force personnel?
DA/DR Hike July 2026: What has the government approved?
The Cabinet approved a 3-percentage-point increase in Dearness Allowance and Dearness Relief on 28 October 2026.
The revised rate applies from 1 July 2026, making eligible employees and pensioners entitled to the difference from that date.
The increase is calculated on the applicable basic pay for employees and basic pension or family pension for pensioners.
What does the Ministry of Finance Order say about Armed Forces Personnel?
The Department of Expenditure issued Office Memorandum No. 1/2(i)/2026-E.II(B) on 29 October 2026.
The order increased DA to 63% for eligible Central Government employees under the applicable 7th Pay Commission pay structure.
The order also applies to civilian employees paid from the Defence Services Estimates. However, it states that separate orders will be issued by the Ministry of Defence for Armed Forces personnel and the Ministry of Railways for Railway employees.
This means serving defence personnel have a separate departmental implementation process.
The general Ministry of Finance order should not be mistaken for the specific Armed Forces DA letter.
Which departments have issued DA/DR orders?
Different departments have taken steps following the Cabinet’s decision.
The Railway Board’s official website lists its order titled Grant of Dearness Allowance to Railway Employees — Revised Rates Effective from 01.07.2026, dated 30 October 2026.
The Postal Department dates mentioned above come from the departmental letters discussed in the presentation; their original copies should be checked before being displayed as official PDF sources.
What has the govt ordered for defence and other pensioners?
The Department of Pension and Pensioners’ Welfare issued Office Memorandum No. 42/02/2024-P&PW(D)/E-9475, dated 4 November 2026.
This document confirms that Dearness Relief has increased from 60% to 63%, effective from 1 July 2026.
The order also applies to additional pension or additional family pension wherever admissible.
Most importantly, authorised pension-disbursing banks have been instructed to arrange payment of the revised DR without waiting for further instructions.
This confirms the revised Dearness Relief entitlement, although it does not establish that every pension account has already been updated.
Has the DA Order for Serving Army, Navy and Air Force Personnel been issued?
As of the 4 November update discussed in the presentation, the separate Ministry of Defence letter for serving Armed Forces personnel had not been located.
The Ministry of Defence’s publicly accessible order listings include an earlier DA instruction effective from 1 January 2026. However, a separate order specifically revising DA to 63% from 1 July 2026 could not be independently verified from the official sources checked for this report.
This does not prove that the Ministry has not issued the letter. It means the relevant July 2026 order has not been confirmed.
The distinction is important because the Cabinet-approved DA rate and the department-specific payment instructions are two separate stages.
Serving personnel should refer to the applicable Ministry of Defence instructions and their pay statements for implementation details.
How much additional DA or DR will be payable?
The increase is equal to 3% of the applicable basic pay or basic pension.
The arrears shown cover July to October 2026 and assume that the earlier 60% rate was paid throughout those four months.
Actual arrears will depend on individual entitlement, eligible pay or pension, and payments already received.
When will the DA/DR Arrears be paid?
Since the revised rate is effective from 1 July 2026, the difference for eligible unpaid months becomes payable as arrears.
However, the Government documents discussed here do not provide one common payment date for every department, bank or pension-disbursing authority.
Employees and pensioners may receive the arrears through their respective payroll or pension-payment systems.
The actual credit date can differ depending on departmental processing and payment arrangements.
Sources
1. Ministry of Finance — Department of Expenditure
Office Memorandum No.: 1/2(i)/2026-E.II(B)
Date: 29 October 2026
Subject: Revision of rates of Dearness Allowance to Central Government employees effective from 01.07.2026.
View Official Department of Expenditure Circulars
2. Ministry of Railways — Railway Board
Date: 30 October 2026
Subject: Grant of Dearness Allowance to Railway Employees — Revised Rates Effective from 01.07.2026.
View Official Railway Board Orders
3. Department of Pension and Pensioners’ Welfare
Office Memorandum No.: 42/02/2024-P&PW(D)/E-9475
Date: 4 November 2026
Subject: Release of an additional instalment of Dearness Relief to Central Government Pensioners/Family Pensioners.
Official Department of Pension and Pensioners’ Welfare
4. Ministry of Defence — Department of Defence
Official Ministry of Defence Orders and Updates
Source clarification: This article distinguishes verified Government instructions from departmental letters mentioned in the presentation but not independently obtained. It does not claim that all DA/DR arrears have been paid or that a separate July 2026 Armed Forces DA order has been officially ruled out.
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