New Delhi, Oct. 28 -- The Union Cabinet on Wednesday approved a 3 per cent increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective July 1, 2026, providing relief against rising prices.

The move will raise DA and DR rates from the existing 60 per cent to 63 per cent of basic pay and pension, respectively.

The increase is expected to benefit approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners across the country.

According to the government, the combined annual financial implication of the increase in DA and DR will be Rs 10,016.10 crore, adding to the Centre's expenditure.

The additional instalment of DA and DR has been approved in accordance wit...