DA Hike: Big news is here. During these inflationary times, there’s some wonderful relief on the horizon. The central government has just greenlit a 3% boost to dearness allowance (DA/DR Hike 2026) and dearness relief (DR).
DA Hike by 3%
This exciting approval came through at an important Union Cabinet meeting led by Prime Minister Narendra Modi. With this decision in place, both employee salaries and pension payments will experience a meaningful jump.
Union Cabinet, chaired by Hon’ble Prime Minister Shri Narendra Modi Ji, approves a 3% hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, from 60% to 63% of basic pay/pension, effective 1 July 2026.
The decision will benefit around 48 lakh Central Government employees and 68 lakh pensioners, with an estimated annual exchequer impact of ₹10,016 crore.
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“>October 28, 2026
Over 1 crore people to gain
Dearness Allowance works as an extra payment for government employees and pensioners, helping shield them from inflation’s impact and keeping their purchasing power intact. This thoughtful government initiative will positively impact roughly 4.9 million central government employees and approximately 6.8 million retirees. The entire adjustment follows a calculation method based on the 7th Pay Commission’s framework.
How Much Salary Will You Get?
Following a 3% Dearness Allowance (DA) hike, the monthly financial benefit for central government employees will depend on their basic salary and pay matrix level. Employees in Level 1, with a basic salary of Rs 18,000, will receive an additional Rs 540 per month. Those in Level 2 will benefit by Rs 597, while Level 3 employees will get Rs 651. The monthly increase will be Rs 765 for Level 4, Rs 886 for Level 5 and Rs 1,062 for Level 6 employees.
For Level 7 and Level 8 employees, the additional amount will be Rs 1,347 and Rs 1,428, respectively. Employees in Levels 9 and 10 will receive Rs 1,593 and Rs 1,683 more per month, while those in Level 11 will benefit by Rs 2,031. The increase will rise to Rs 2,364 for Level 12, Rs 3,693 for Level 13 and Rs 3,930 for Level 13A. Meanwhile, employees in Levels 14, 15, 16 and 17 will receive additional monthly benefits of Rs 4,326, Rs 5,466, Rs 6,162 and Rs 6,750, respectively. Employees at the highest Level 18, with a basic salary of Rs 2.5 lakh, will receive an additional Rs 7,500 per month. These figures are indicative calculations based on a 3% increase in basic pay; the actual benefit will depend on the employee’s eligible basic salary and the officially approved DA rate.