Amit Shah hails 3% DA hike for 1.17 crore central govt staff
Synopsis
The Union Cabinet has approved a 3% rise in Dearness Allowance and Dearness Relief, benefiting 1.17 crore central government employees and pensioners at a cost of ₹10,016.10 crore. Union Home Minister Amit Shah welcomed the move as proof of the Modi government's welfare commitment.
Key Takeaways
The Union Cabinet approved a 3% hike in both Dearness Allowance (for serving employees) and Dearness Relief (for pensioners).
Approximately 1.17 crore central government employees and pensioners stand to benefit.
The total financial outlay of the revision is ₹10,016.10 crore .
DA and DR are revised biannually based on the All India Consumer Price Index for Industrial Workers under the 7th Pay Commission framework.
Union Home Minister Amit Shah described the decision as a reflection of the Modi government's commitment to employee and pensioner welfare.
A 3% jump in Dearness Allowance and Dearness Relief, a cabinet table, and 1.17 crore central government employees and pensioners who wake up better off — that is the arithmetic of Wednesday's Union Cabinet decision. Union Home Minister Amit Shah welcomed the move on Wednesday, 28 October 2026, calling the ₹10,016.10 crore outlay a direct expression of the Modi government's commitment to its workforce.
What the cabinet cleared — and who gains
The cabinet approved a hike of 3 percentage points in both Dearness Allowance (DA), which goes to serving employees, and Dearness Relief (DR), which cushions pensioners against inflation. The combined financial implication of ₹10,016.10 crore covers roughly 1.17 crore beneficiaries across the central government payroll and pension rolls. Shah framed it plainly: 'a testament to the Modi government's commitment to their welfare.'
The inflation-linked machinery behind every DA revision
DA and DR are not discretionary gifts — they are formula-driven adjustments tied to the All India Consumer Price Index for Industrial Workers (AICPI-IW), the inflation benchmark for the organised workforce. The 7th Central Pay Commission, implemented from 2016, locked in the current pay matrix and the methodology for these calculations. Under that architecture, the Union Cabinet meets twice a year — typically around March and October — to ratify fresh DA rates that track how much more the average basket of goods costs compared with the base year.
The mechanism has run continuously across administrations, but the political ownership of each announcement is real: a higher revision signals both inflationary pressure and the government's fiscal willingness to absorb it on behalf of its employees. Prime Minister Narendra Modi's governments since 2014 have maintained this biannual schedule without interruption.
₹10,016.10 crore and what it signals for the exchequer
At just over ₹10,000 crore, the annual outlay from this single revision is a meaningful line item in central government expenditure. For an individual employee, a 3-percentage-point rise translates to a proportional bump in every monthly pay slip — more so for those in higher pay bands where the DA base is larger. For pensioners, DR moves in lockstep, preserving purchasing power as prices rise. The next checkpoint will be the subsequent AICPI-IW data cycle and whether the upcoming Union Budget sets aside additional headroom for employee-related commitments.
Point of View
And the ₹10,016.10 crore price tag shows the government is absorbing inflationary pressure rather than capping it. Shah's framing of the move as a 'commitment to welfare' reinforces the BJP's sustained effort to portray the central government workforce as a priority constituency — a message that carries weight in states where government employment is disproportionately high. The key long-run variable is whether the AICPI-IW trajectory forces an even larger revision in the next cycle, testing the exchequer's headroom.
NationPress
28 Oct 2026
Frequently Asked Questions
What is the DA hike approved by the Union Cabinet in October 2026?
The Union Cabinet approved a 3% increase in Dearness Allowance for serving central government employees and Dearness Relief for pensioners, effective from the latest revision cycle.
How many people benefit from the October 2026 DA hike?
Approximately 1.17 crore central government employees and pensioners are set to benefit from the revised DA and DR rates.
What is the total cost of the 3% DA hike to the government?
The financial outlay for this revision is ₹10,016.10 crore , which will be borne by the central exchequer.
How is Dearness Allowance calculated for central government employees?
DA is calculated using the All India Consumer Price Index for Industrial Workers (AICPI-IW) under the formula established by the 7th Central Pay Commission , implemented from 2016. The cabinet reviews and revises the rate twice a year.
When is the next DA revision expected for central government employees?
DA revisions happen twice a year , typically around March and October. The next revision will depend on fresh AICPI-IW data and may also be referenced in the upcoming Union Budget.
