Government Approves 2% DA Hike For Central Employees And Pensioners

The Government has approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners.

With this revision, DA will rise from 58% to 60% of basic pay, effective January 1, 2026.

Who Will Benefit?

The decision will benefit:

• 50.5 lakh central government employees
• 68.3 lakh pensioners

The total annual cost to the government is estimated at ₹6,791 crore.

Previous DA Revision

The last increase was in October 2025, when DA was raised from 55% to 58%, effective from July 1, 2025, with arrears paid.

Link With 8th Pay Commission

The hike comes as employee unions push for changes under the 8th Pay Commission. Unions have demanded a fitment factor of 3.83, which could increase the minimum basic salary from ₹18,000 to around ₹69,000 if approved. This proposal is still under consideration.

Impact On Pensioners

If basic pay rises in the future:

• Pension will increase automatically
• Family pension will also rise
• DA on pension will continue

What Is Dearness Allowance (DA)?

DA is a part of salary paid to government employees and pensioners to offset inflation.
It is:

• Revised twice a year (January and July)
• Based on the Consumer Price Index (CPI)
• Fully taxable and included in total income

Once the 8th Pay Commission is implemented, the current DA may be merged into basic pay and reset to zero.

Read More: PAN Becomes Mandatory for High Value Transactions from April 1, 2026.

Conclusion

This latest DA and DR hike offers additional financial support to government employees and pensioners and continues the regular inflation-linked pay adjustment system.

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