Central Government DA Increased to 63%: New Salary Rates Effective from July 2026

Central government employees and pensioners have received a major financial update as the Union Government has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR). With this revision, the DA rate has increased from 60% to 63% of basic pay, while pensioners will also receive the revised relief.

The decision is effective retrospectively from July 1, 2026, bringing additional financial benefits to millions of employees and retired government workers.

3% DA Hike Brings Relief to Employees

The Union Cabinet approved the additional DA instalment . The increase is intended to help government employees manage rising living expenses and changes in consumer prices.

Following the revision, eligible central government employees will receive DA at 63% of their basic salary instead of the earlier 60%.

Pensioners to Receive Higher Dearness Relief

The latest revision also covers central government pensioners.

Their Dearness Relief has been increased by three percentage points, taking the applicable rate from 60% to 63% of basic pension.

The decision is expected to benefit approximately 48.54 lakh central government employees and 68.71 lakh pensioners.

Government Estimates Annual Financial Impact

The combined annual financial impact of the DA and DR increase on the government treasury is estimated at approximately ₹10,016.10 crore.

The revision follows the established formula based on the recommendations of the 7th Central Pay Commission.

Separate orders have also been issued for employees continuing under the 5th and 6th Pay Commission pay structures.

What Employees Should Expect Next

Since the revised rates are applicable from July 1, eligible employees can expect the financial adjustment to be reflected through the revised DA calculation and applicable arrears.

The latest increase provides additional financial support to government employees and pensioners while they await further developments concerning the 8th Pay Commission.

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