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The Union Cabinet's decision on Saturday to increase DA allowance of central government employees and Dearness Relief (DR) for pensioners by 2 per cent will cost the exchequer Rs 6,791 crore.
It represents an increase of two per cent over the existing rate of 58 per cent of the Basic Pay/Pension, to compensate against price rise. Briefing about the cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the decision will benefit over 50 lakh Central Government employees and over 68 lakh pensioners. "Another very big decision was taken today. I would like to extend my heartiest congratulations. DA and DR have been increased for all our central government employees and pensioners, which will cost the Government of India a total of Rs. 6,791 crore. Basically, DA and DR will become 60% of the basic pay from January 1, 2026. It has been increased by 2%, from 58% to 60%. It will become 60% of the basic pay. There are a total of about 50 lakh employees and 68 lakh pensioners of the Government of India. This will be a huge benefit for all of them," he said. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, an official release said. (ANI)
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