NewsFlash Daily™
18 April 
The Central Government has approved a 2% Dearness Allowance hike for employees and pensioners, raising DA from 58% to 60% with effect from January 1, 2026
New Delhi: In a major relief for lakhs of government staff and retirees, the Central Government led by Prime Minister Narendra Modi has approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners.
The decision was taken during the Union Cabinet meeting held today, bringing the total DA from the existing 58% to 60% of basic pay. The revised rate will be implemented retrospectively from January 1, 2026, meaning eligible beneficiaries will also receive arrears for past months.
This move is being seen as a major financial boost amid rising inflation and growing expectations around the 8th Pay Commission.
Who Will Benefit?
According to the Cabinet announcement, the DA hike will benefit:
- 49.19 lakh Central Government employees
- 68.72 lakh pensioners
The same increase will apply to pensioners through Dearness Relief (DR).
How Much Will Salary Increase?
For an employee with a basic salary of Rs 30,000, the 2% hike means an additional:
- Rs 600 per month after revision
- The final increase may vary depending on basic pay levels.
Government’s Additional Financial Burden
The Centre has reportedly allocated an additional Rs6,791 crore annually to implement the revised DA and DR benefits.
This reflects the scale of impact the decision will have across departments and pension systems.
8th Pay Commission Buzz Grows
The announcement comes at a time when employee unions are demanding broader salary restructuring and benefits reforms linked to the proposed 8th Pay Commission.
Many workers are now expecting future updates on pay matrix revisions and pension benefits.
Previous DA Hike
Earlier, in October 2025, the Union Cabinet had approved a 3% DA hike, effective from July 1, 2025.
