The DA and DR increase will be effective from July 1, 2026 and will benefit 48.54 lakh employees and 68.71 lakh pensioners. The government revises dearness allowance and dearness relief (DR) twice a year, in January and July, to help employees and pensioners cope with inflation. The Modi Cabinet has approved a 3% DA and DR hike for Central Government employees and pensioners, benefiting over 1.