Cabinet approves 3% hike in dearness allowance for central government employees
The cabinet has sanctioned a 3% rise in dearness allowance and dearness relief for central government staff, taking effect on July 1, 2026. The adjustment will apply to roughly 4.85 million employees and about 6.87 million pensioners, increasing their monthly earnings in line with inflation expectations. The move is intended to offset rising living costs and will be financed through the central budget.