Union Cabinet approves 2% increase in Dearness Allowance

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners. The increase will be effective from January 1, 2026, and is 2% over the existing rate of 58% of the Basic pay/pension to compensate against price rise.