New Delhi, Oct. 29 -- Dearness allowance (DA) for central government employees has risen from 2% of basic pay in 2016 to 63% in 2026, following the latest 3-percentage-point hike approved by the Union Cabinet on Wednesday, October 28.

The government revises this allowance twice a year, with changes effective from January 1 and July 1. While the January revision is announced in March or April, the July revision is generally announced in October.

The latest revision is expected to benefit around 48 lakh central government employees and 68 lakh pensioners, as dearness relief (DR) for pensioners has also been hiked by 3% during this cycle. The combined annual cost of the increase in DA and DR is estimated at Rs.10,016 crore.

The Union gove...