The Union Cabinet has approved a 3 percentage point increase in Dearness Allowance for central government employees and Dearness Relief for pensioners. The revised rate will increase from 60 percent to 63 percent of basic pay or pension, effective from July 1, 2026. According to the government, the decision will benefit around 48.54 lakh employees and 68.71 lakh pensioners across India.
The actual salary increase will depend on an employee basic pay. For someone earning a basic pay of Rs 18,000 per month, the additional allowance will be Rs 540 monthly. An employee with a basic pay of Rs 35,400 will receive an additional Rs 1,062 per month. Those with a basic pay of Rs 56,100 will get Rs 1,683 more each month before deductions.
The calculation is simple. Employees can multiply their monthly basic pay by 3 and divide the result by 100 to estimate the additional monthly allowance. For example, a basic pay of Rs 40,000 will mean an extra Rs 1,200 per month. The increase applies to basic pay, not the entire salary. Therefore, the final amount credited to an employees bank account may differ because of applicable deductions and other salary components.
The revised allowance is effective from July 1, so eligible employees can also receive arrears for the period covered by the new rate. The exact amount will depend on basic pay and the eligible months. Pensioners will receive the corresponding increase in Dearness Relief based on their basic pension. Employees and pensioners should check official department updates for payment details. The increase is intended to help beneficiaries manage rising living costs.
