New Delhi, October 28, 2026 (Yes Punjab News)
In a festive-season bonanza, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.
The combined annual financial impact of the increase in DA and DR on the government exchequer will be Rs 10,016.10 crore, according to an official Cabinet statement.
The decision will benefit approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners. The increase will take effect from July 1, 2026, raising DA and DR by 3 percentage points over the existing rate of 60 per cent of Basic Pay or Pension.
The revision is intended to compensate employees and pensioners for rising prices. The Cabinet said the increase follows the accepted formula based on the recommendations of the 7th Central Pay Commission.
Meanwhile, the 8th Central Pay Commission is holding consultations on matters related to salaries, allowances and pensions. The discussions are expected to consider pay conditions and submissions from various stakeholders before the commission finalises its recommendations.
The commission is headed by former Supreme Court Justice Ranjana Prakash Desai. Its members include former IAS officer Pankaj Jain, who is serving as Member-Secretary, and Pulak Ghosh, a tenured Professor of Finance and member of the Economic Advisory Council to the Prime Minister.
Feedback collected during the consultations will form part of the inputs considered while preparing the commission’s recommendations, which could affect the financial interests of more than one crore employees and pensioners.
The group includes Central Government employees and pensioners, including defence and railway personnel and retirees. Employee representatives are seeking a higher fitment factor, which would determine the revised basic pay under the next pay revision.
Unions are also demanding changes to the Dearness Allowance framework, including more frequent revisions and a possible merger of DA with basic pay once a specified threshold is reached.
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