63% DA Hike Announced: Cabinet Approves Rs 10,016 Cr for Dearness Allowance – What We Know So Far

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New Delhi: In a major development reported by ET Now on October 28, 2026, the Union Cabinet has approved a financial outlay of Rs 10,016 crore for Dearness Allowance (DA) and Dearness Relief (DR), linking the revision to a 63% level for central government employees and pensioners. However, while media reports indicate Cabinet clearance, beneficiaries are currently awaiting the comprehensive Gazette notification and official circular from the Ministry of Finance / Department of Expenditure to confirm exact rollout dates, arrears schedule, and individual salary impacts.

DA Revision at a Glance

Particulars Details Reported
Announcement Status Cabinet approval reported by ET Now (Oct 28, 2026)
Reported DA Figure 63% Dearness Allowance / Relief
Cabinet Approved Outlay Rs 10,016 crore
Beneficiaries Central government employees and pensioners
Official Gazette Notification Awaited from Department of Expenditure (DoE)
Verification Status as of Oct 30, 2026 Reported by media; formal OM under release

Key Highlights of the Reported Announcement

  • Financial Allocation: According to the report, the Union Cabinet cleared a dedicated package of Rs 10,016 crore specifically allocated to cover the increased dearness allowance liability.
  • DA Reaching 63%: The revision is stated to position the Dearness Allowance rate at 63%, providing essential relief against inflation for eligible personnel.
  • Dual Coverage: As standard with central allowance revisions, the benefit extends to working central government staff (as DA) and retired pensioners (as Dearness Relief or DR).
  • Awaiting Official Office Memorandum (OM): While the Cabinet nod is reported, payroll sections across ministries will formally apply the revised percentage only after the Department of Expenditure issues its official Office Memorandum.

Understanding the Reported 63% DA Hike

Dearness Allowance is a key salary component provided to central government staff to offset the erosion of real income caused by retail inflation. Under the 7th Central Pay Commission (CPC) framework, DA revisions are typically calculated twice a year (effective from January 1 and July 1) based on the 12-month average of the All-India Consumer Price Index for Industrial Workers (CPI-IW) compiled by the Labour Bureau.

The latest reporting of a 63% level marks a significant milestone in allowance levels under current pay matrices. When finalized, the approved Rs 10,016 crore expenditure will flow directly into higher take-home monthly pay and updated pension disbursements across civilian, railway, and defense establishments.

Arrears and Payment Timeline: What Happens Next?

Employees and pensioners should note the standard operational procedure following a Cabinet decision:

  1. Departmental Clearance: The Ministry of Finance (Department of Expenditure) issues an official Office Memorandum specifying the exact effective date and rounded percentages.
  2. Payroll Processing: Drawing and Disbursing Officers (DDOs) across ministries update the salary software to reflect the 63% rate on basic pay.
  3. Arrears Calculation: If the revision has retrospective effect (such as from July 1), arrears for preceding months are calculated and credited alongside regular monthly salaries.
  4. Pension Disbursal: The Department of Pension & Pensioners' Welfare (DoPW) coordinates with authorized banks to disburse adjusted DR amounts and arrears to retired staff.

How to Verify the Official Circular

Employees are advised to rely strictly on official government channels to check when the revision takes formal effect in payroll systems:

Frequently Asked Questions (FAQs)

Has the central government officially issued the 63% DA order?

ET Now reported that the Union Cabinet has approved Rs 10,016 crore for the DA revision reaching 63%. The formal Office Memorandum (OM) from the Department of Expenditure is required before accounts offices update salary slips.

Who is eligible to receive this revised dearness allowance?

All regular central government civil employees, defense personnel, railway staff, and central pensioners drawing benefits under the Central Pay Commission framework are eligible.

How will the 63% DA be calculated on salary?

DA is calculated strictly as a percentage of the basic pay (under the designated Level of the 7th CPC Pay Matrix). Special pay, allowances, or other perks are not included when computing the DA component.

Will employees receive arrears along with the new rate?

Whenever a DA revision takes retrospective effect from an earlier cutoff date, cumulative arrears for the interim months are credited directly to salary and pension bank accounts.


Last checked note: Verified as of October 30, 2026. The initial report originates from ET Now coverage on October 28, 2026, reporting Cabinet approval of Rs 10,016 crore. Formal administrative circulars remain subject to release on official Ministry of Finance web portals.

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