India approves 3% dearness allowance hike for 48.5 lakh central employees

India's central workforce of 48.54 lakh employees and 68.71 lakh pensioners will receive 3% higher allowances from July 1, 2026, raising DA/DR from 60% to 63% of base pay. Arrears covering July–September 2026 will be disbursed in the next payroll cycle. The annual fiscal outlay is ₹10,016 crore. This is the second DA adjustment in 2026 (following 2% in January), reflecting inflation indexing under the Seventh Central Pay Commission framework. Measurable impact: employees earning ₹30,000 baseline will gain ~₹900/month; those at ₹40,000 will gain ~₹1,200/month.