Summary
The increase will raise the allowance from 60 percent to 63 percent of the basic pay, beginning July 1, 2026.
Around 4.8 million workers and 6.9 million retirees will benefit, costing the government about 10,016 crore Indian rupees.
Key Points
5 points1
Dearness allowance is extra money to help with rising prices.
2
The boost changes the allowance from 60% to 63% of basic pay.
3
Effective date: July 1, 2026.
4
Beneficiaries: roughly 48.5 lakh workers and 68.7 lakh retirees.
5
Cost to the government: about 10,016 crore rupees.
New Words to Learn
5 wordsdearness allowance
extra money to help people buy things when prices go up
basic pay
the regular salary before extra payments
lakh
one hundred thousand
crore
ten million
government money
the money the country uses to pay for things
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