GAWAH News Desk | October 29, 2026
The Union Cabinet has approved a three-percentage-point increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, taking the rate from 60% to 63% of basic pay or pension with effect from 1 July 2026. The government says the decision will benefit about 48.54 lakh employees and 68.71 lakh pensioners.
The practical question is how much more that means each month. The additional amount is generally calculated as 3% of the employee’s basic pay or the pensioner’s basic pension—not 3% of the entire take-home salary or total pension payment.
How much extra will you get after the DA hike?
Use the table below to estimate the monthly difference. These are simple calculations based on the new rate being three percentage points higher than the previous 60% rate; they are not official individual pay slips.
| Basic pay or basic pension | Earlier DA/DR at 60% | New DA/DR at 63% | Monthly increase |
|---|---|---|---|
| ₹18,000 | ₹10,800 | ₹11,340 | ₹540 |
| ₹19,900 | ₹11,940 | ₹12,537 | ₹597 |
| ₹25,500 | ₹15,300 | ₹16,065 | ₹765 |
| ₹29,200 | ₹17,520 | ₹18,396 | ₹876 |
| ₹35,400 | ₹21,240 | ₹22,302 | ₹1,062 |
| ₹44,900 | ₹26,940 | ₹28,347 | ₹1,347 |
| ₹56,100 | ₹33,660 | ₹35,343 | ₹1,683 |
| ₹78,800 | ₹47,280 | ₹49,644 | ₹2,364 |
Quick calculation: multiply your basic pay or eligible basic pension by 0.03. For example, ₹35,400 × 0.03 = ₹1,062 extra per month before any applicable deductions or adjustments.
When does the 3% DA hike take effect?
The Cabinet decision is effective from 1 July 2026. That effective date is important when departments calculate any amount due for previous months. The Cabinet announcement does not itself specify a single payment date for every department, so employees and pensioners should check the relevant department, pension-disbursing authority or payroll notice for the schedule and treatment of arrears.
Does the hike mean a 3% increase in your full salary?
No. The approved change raises the DA rate from 60% to 63% of basic pay, a difference of three percentage points. DA is only one component of salary. House Rent Allowance, transport-related payments, deductions, tax and other components are governed by their own rules. As a result, the increase in take-home pay may not match the simple DA difference shown in the table.
How many employees and pensioners will benefit?
The official Cabinet announcement estimates 48.54 lakh central government employees and 68.71 lakh pensioners will benefit—a combined total of 1.1725 crore people. The government estimates the combined annual cost of the DA and DR increase at ₹10,016.10 crore. The revision follows the accepted formula based on recommendations of the Seventh Central Pay Commission.
Will state government employees also receive the same increase?
The announcement covers central government employees and pensioners. State governments make their own decisions on DA and DR for their employees and pensioners, so the central decision should not be treated as an automatic order for Telangana or any other state. State employees should wait for an official state government or finance department notification.
Frequently asked questions
What is the new DA rate from July 2026?
The approved rate is 63% of basic pay, up from 60%, effective 1 July 2026.
How much extra DA will someone with basic pay of ₹25,500 receive?
The difference is ₹765 per month, calculated as 3% of ₹25,500. Actual payroll treatment should be checked against the applicable departmental order.
Will pensioners get the same 3% increase?
Eligible central government pensioners receive the corresponding three-percentage-point increase in Dearness Relief, calculated on the applicable basic pension.
When will DA arrears be paid?
The effective date is 1 July 2026, but the Cabinet announcement does not provide one universal payment date. Check the official order and instructions issued by the relevant department or pension authority.
Does this apply automatically to Telangana government staff?
No. The Cabinet decision is for central government employees and pensioners. Telangana state employees need a separate state government decision or order.
Official source
The figures and effective date in this report are based on the Prime Minister’s Office announcement on the DA and DR increase, published on 28 October 2026.
Representative image: calculator and office paperwork. Photo: maks_d/Unsplash.
