New Delhi, Nov. 12 -- The Union Cabinet in October hiked dearness allowance (DA) and dearness relief (DR) by 3% for central government employees and pensioners, respectively. This raised the component from 60% to 63% of basic pay, effective from 1 July.

Beneficiaries include more than 1 crore people, including around 50 lakh central government employees and some 65 lakh pensioners, including defence and railway personnel and retirees. This hike is the second this year under the 7th Central Pay Commission (CPC) recommendations and comes after the government increased the allowance by 2% in April from 58% to 60%, effective from 1 January 2026.

Besides the Finance Ministry's announcement on 28 October, state governments also hiked DA for e...