Kashmir Impulse Desk

New Delhi, April 18 

India’s cabinet on Saturday approved a 2 percentage point increase in dearness allowance (DA) for federal government employees and dearness relief (DR) for pensioners, effective January 1, 2026, the government said in a statement.

The hike raises DA and DR from 58 percent to 60 percent of basic pay and pension, aimed at offsetting the impact of inflation.

The decision, taken at a cabinet meeting chaired by Prime Minister Narendra Modi, will have an annual financial impact of about Rs 67.9 billion, according to official estimates.

The increase is expected to benefit around 5.05 million central government employees and 6.83 million pensioners.

Dearness allowance and relief are revised periodically based on inflation trends, in line with recommendations of the 7th Central Pay Commission.