Diwali gift for Central staff: Cabinet raises DA to 63%, over 1.16 crore beneficiaries to gain
Cabinet approves 3% DA and DR hike, taking it to 63% from 60%. See how much your salary rises, who benefits and when arrears apply
PTC Web Desk: Just ahead of Diwali, the Union Cabinet has cleared a 3 percentage point increase in dearness allowance (DA) for Central Government employees. Pensioners will get the same increase in dearness relief (DR). Both rates move up from 60% to 63%.
Union Minister Ashwini Vaishnaw announced the decision after the Cabinet meeting on Wednesday. He described it as a Diwali gift from the Prime Minister to about 48 lakh serving employees and 68 lakh pensioners. The move is meant to cushion them against rising prices and it will cost the exchequer Rs 10,016 crore.
What the revision means
DA goes to serving employees, while DR is the equivalent for pensioners. Both are fixed as a percentage of basic pay or basic pension and revised from time to time to reflect changes in the cost of living. With this decision, employees will get 63% of their basic pay as DA and pensioners will get 63% of their eligible basic pension as DR.
Not a 3% rise in the whole salary
The hike applies only to the basic pay, so the extra amount depends on where an employee sits in the pay scale. Here is how it works out:
Basic pay of Rs 18,000: DA rises from Rs 10,800 to Rs 11,340, a gain of Rs 540 a month.
Basic pay of Rs 35,400: the monthly gain is Rs 1,062.
Basic pay of Rs 50,000: DA goes from Rs 30,000 to Rs 31,500, which is Rs 1,500 more every month.
Pensioners will see a similar rise in their monthly relief, based on their eligible basic pension.
Second revision this year
The last revision came in April 2026, when DA and DR were raised by two percentage points, from 58% to 60%, effective January 1, 2026. The government usually revises these rates twice a year, with changes counted from January 1 and July 1. The latest hike belongs to the July 2026 cycle.
Because it is tied to that cycle, eligible employees and pensioners will also receive arrears, subject to the terms of the government order. The revised rates and their effective date will apply as specified in that order.
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