Current Affairs - Economy - Discussion

3% is the additional increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners approved by the Union Cabinet. The revision is effective from July 1, 2026, and aims to compensate beneficiaries for rising living costs due to inflation. The increase is calculated based on the accepted formula of the 7th Central Pay Commission, raising the existing DA and DR rate of 60% of Basic Pay or Pension by 3 percentage points to 63%. The decision benefits approximately 48.54 lakh employees and 68.71 lakh pensioners, with an estimated annual financial impact of ₹10,016.10 crore.