Cabinet approves 2% increase in Dearness Allowance for central government employees and Dearness Relief for pensioners, effective January 1, 2026.
The hike raises the rate from 58% to 60% of Basic Pay/Pension to compensate for price rise.
The combined annual financial impact on the exchequer is estimated at ₹6,791.24 crore.
The increase will benefit approximately 50.46 lakh employees and 68.27 lakh pensioners.