New Delhi, Oct. 29 -- The Union Cabinet approved a 3-percentage-point increase in Dearness Allowance (DA) for Central Government employees, raising the rate from 60% to 63% of basic pay on Wednesday. The revised rate will apply from 1 July 2026, providing additional inflation-linked relief to employees.

According to the Ministry of Finance release dated 28 October, the revision follows the accepted formula based on the recommendations of the 7th Central Pay Commission (CPC). Here's how much salaries could increase across different pay levels under the 7th CPC.

DA is calculated as a percentage of basic pay. With the rate increasing from 60% to 63%, employees will receive an additional amount equivalent to 3% of their basic pay each month...