NEW DELHI:In a major relief ahead of Diwali, the Union Cabinet on Wednesday approved a 3 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners.
Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the Union Cabinet headed by Prime Minister Narendra Modi has taken the decision to increase the DA and DR ahead of Diwali.
The increase will be effective from July 1, 2026.
The decision will benefit 48.54 lakh employees and 68.71 lakh pensioners, taking the total number of beneficiaries to over 1.17 crore.
The hike will entail an additional financial implication for the government exchequer and will boost the festive spending.
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