India, Oct. 28 -- The central government has approved an increase in Dearness Allowance (DA) and Dearness Relief (DR) by three per cent, effective from July 1 this year, Union minister Ashwini Vaishnaw said on Wednesday.

The DA for Central Government employees and DR for pensioners are set to increase from 60 per cent to 63 per cent of basic pay or pension, effective July 1, 2026, said Vaishnaw, announcing the hike.

The increase in DA and DR will have a combined annual financial implication of Rs.10,016 crore for the government exchequer, he said, adding that it is expected to benefit around 48 lakh Central Government employees and 68 lakh pensioners. The revision is aimed at providing relief against rising prices by adjusting the allow...