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Informist, Saturday, Apr. 18, 2026

 

--Cabinet OKs hike in dearness allowance for govt employees 

--Cabinet hike in dearness allowance to cost INR 67.91 bln to govt exchequer 

--Cabinet hikes dearness allowance by 2% of basic pay for govt employees 

--Cabinet hikes dearness allowance to 60% of basic pay for govt employees 

 

NEW DELHI – The Union Cabinet has approved a 200 basis-point increase in dearness allowance and dearness relief to 60% of basic pay and pension, respectively, for central government employees and pensioners, effective Jan. 1. The increase will cost the exchequer INR 67.91 billion per annum, Information and Broadcasting Minister Ashwini Vaishnaw said in a press conference on Saturday.

 

The move is set to benefit 5.05 million employees and 6.83 million pensioners, the government said in a press release. "This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission."

 

The government typically hikes the dearness allowance twice a year. In October, it had raised the dearness allowance and dearness relief by 300 bps to 58% of basic pay and pension.  End

 

Reported by Priyasmita Dutta

Edited by Ashish Shirke

 

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