Dearness Allowance hiked by 2% for central government employees, pensioners
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday approved an additional instalment of Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2026.
The hike of 2 percentage points raises the DA and DR from the existing 58% to 60% of Basic Pay and Pension, aimed at offsetting the impact of rising prices.
The decision is expected to benefit around 50.46 lakh Central government employees and 68.27 lakh pensioners. The annual financial implication of the increase is estimated at Rs 6,791.24 crore.
The revision follows the accepted formula based on the recommendations of the 7th Central Pay Commission, which periodically adjusts allowances in line with inflation trends.
