The Government of India has approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2026 representing an increase of 2% over the existing rate of 58% of the Basic Pay/Pension, to compensate against price rise. The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs.6791.24 crore per annum. This will benefit about 50.46 lakh Central Government employees and 68.27 lakh pensioners. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.