Boost in Dearness Allowance: Relief for Millions of Government Employees and Pensioners

The government has raised Dearness Allowance and Dearness Relief by 2%, impacting over 50 lakh employees and over 68 lakh pensioners. This will cost the exchequer Rs 6,791.24 crore annually. The increase follows the 7th Central Pay Commission's recommendations and takes effect from January 1, 2026.

In a significant financial decision, the Indian government on Saturday announced a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners.

This move, aimed at offsetting the impact of rising prices, will benefit approximately 50.46 lakh employees and 68.27 lakh pensioners across the country.

The Information and Broadcasting Minister, Ashwini Vaishnaw, stated that the increase aligns with recommendations from the 7th Central Pay Commission and will cost the exchequer an estimated Rs 6,791.24 crore per annum.