**Summary of Cabinet Approval: Additional Instalment of Dearness Allowance and Dearness Relief**
**Overview**
On April 18, 2026, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the release of an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. This measure is intended to compensate for the impact of price increases.
**Key Metrics and Data Points**
* **Effective Date:** January 1, 2026.
* **Rate of Increase:** 2% increase over the existing rate.
* **Revised Total Rate:** 60% of the Basic Pay/Pension (up from the previous rate of 58%).
* **Financial Impact:** The combined annual cost to the exchequer is estimated at Rs. 6,791.24 crore.
* **Beneficiaries:**
* **Central Government Employees:** Approximately 50.46 lakh individuals.
* **Pensioners:** Approximately 68.27 lakh individuals.
**Regulatory Basis**
The increase follows the established formula based on the recommendations of the 7th Central Pay Commission.
**Administrative Information**
* **Source:** Press Information Bureau (PIB), Delhi.
* **Release ID:** 2253244.
* **Posted Date:** 18 APR 2026, 3:13 PM.
* **Visitor Counter:** 11,702.
Key Entities Referenced
Dearness Allowance (DA) and Dearness Relief (DR): Cost-of-living adjustment allowances for Central Government employees and pensioners, recently increased by 2% to compensate for inflation.
7th Central Pay Commission: The commission whose recommended formula serves as the basis for determining periodic adjustments to Dearness Allowance and Dearness Relief.
Cabinet
Cabinet approves additional instalment of
Dearness Allowance to Central Government
employees and Dearness Relief (DR) to
pensioners w.e.f. 01.01.2026
Posted On: 18 APR 2026 3:13PM by PIB Delhi
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved to release an
additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief
(DR) to pensioners w.e.f. 01.01.2026 representing an increase of 2% over the existing rate of 58% of the
Basic Pay/Pension, to compensate against price rise.
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness
Relief would be Rs.6791.24 crore per annum. This will benefit about 50.46 lakh Central Government
employees and 68.27 lakh pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the
7th Central Pay Commission.
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