Cabinet Approves 2% Increase in Dearness Allowance for 2026
The Union Cabinet, led by Prime Minister Shri Narendra Modi, has sanctioned a 2% additional instalment for both the Dearness Allowance and Dearness Relief for Central Government employees and pensioners, starting January 1, 2026. This adjustment aims to mitigate the impact of inflation. The decision, based on recommendations from the 7th Central Pay Commission, will affect around 50.46 lakh government employees and 68.27 lakh pensioners, costing the exchequer approximately Rs. 6791.24 crore annually.
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