DA Hike latest news: The hike will benefit about 48.54 lakh central government employees and 68.71 lakh pensioners. (Unsplash)

DA Hike impact: The Union government on Wednesday announced a three percentage point hike in dearness allowance (DA) and dearness relief (DR) over the existing rate of 60% of the basic pay and pension.

This means the new rate will be 63%. DA and DR are provided to government employees and pensioners, respectively.

The hiked rates, which will come into retrospective effect from July 1, 2026, are meant to benefit employees and pensioners ahead of Diwali, an official statement said.

What is DA and how is it calculated?

DA is provided by the government to its employees to cushion the impact of rising prices and the cost of living. Inflation erodes the buying power of money. This is the justification for DA.…