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Cabinet approves 60% dearness allowance for central staff and 60% dearness relief for pensioners
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved raising dearness allowance for central government employees and dearness relief for pensioners to 60% of basic pay and pension. The decision, effective from January 2026, will benefit about 12.2 million people and will increase annual government expenditure by ₹6,791.24 crore.
Why It Matters
This policy change affects a large segment of government workers and pensioners, altering living-cost support and impacting the federal budget this year.
Timeline
1 Event
Cabinet approves 60% dearness allowance and dearness relief
April 18, 2026
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a two-percentage-point increase in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners, raising both to 60% of basic pay and pension, respectively. The decision will be effective from January 2026 and is expected to benefit around 12.2 million people, including 5.4 million employees and 6.8 million pensioners. The revision, based on inflation trends, will increase the government’s annual expenditure by ₹6,791.24 crore.