India, Oct. 29 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday raised the dearness allowance (DA) for about 4.85 million central government employees by three percentage points to 63%, along with a similar increase in the dearness relief (DR) for 6.87 million pensioners ahead of Diwali.

Information and broadcasting minister Ashwini Vaishnaw said the raised allowance will be effective from July 1, 2026 and described it as a "Diwali gift" to millions of employees and pensioners.

The combined impact on the exchequer on account of the increase in both DA and DR would be Rs.10,016.10 crore per annum, he said.

Generally, DA and DR are raised twice annually - often with retrospective effect from January and July. ...