2% DA, DR raise for govt staff

The Cabinet on Saturday approved a 2 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) for Central government employees and pensioners, taking the rate to 60 per cent of basic pay, offering a modest boost to salaries. The impact on the exchequer on account of an increase in both Dearness Allowance and Dearness Relief would be Rs 6791.24 crore per annum. The hike will be effective from January 1, 2026, and is expected to benefit about 50.46 lakh employees and 68.27 lakh pensioners. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.