Before the celebration of Diwali, the Cabinet of Ministers approved a 3% increase in the wage index coefficient (DA) for central government employees, and also provided a cost of living compensation allowance (DR) for pensioners.
This decision will positively affect more than 10 million employees and pensioners and will be effective from July to December 2026.
As a result of this increase, the DA and DR coefficients will rise from the previous 60% to 63% of the basic salary.
The total financial impact of this increase on the state treasury will amount to 10,016 crore rupees annually. The government noted that this increase aligns with the adopted formula based on the recommendations of the seventh Central Payments Commission.