New Delhi
The Union Cabinet on Saturday approved a 2 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR), benefiting around 50.46 lakh central government employees and 68.27 lakh pensioners. The hike will be effective from January 1, 2026, raising the rate from 58 per cent of basic pay and pension. Information and Broadcasting Minister Ashwini Vaishnaw said the decision will cost the government Rs 6,791.24 crore annually and follows the 7th Pay Commission formula to offset rising prices.