The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, raising the rate from 58% to 60% of basic pay.
The revision will be effective from January 2026 and will also apply to Dearness Relief (DR) for pensioners.
According to the update, the hike is expected to benefit over 1 crore employees and pensioners across India. The adjustment comes in line with inflation trends based on the Consumer Price Index for Industrial Workers (CPI-IW).
The salary impact of the hike is modest but direct. For example:
This means employees will see a small rise in monthly income depending on their basic pay scale. Higher basic salaries will naturally result in larger absolute gains.
While the increment is relatively lower compared to previous revisions, it still provides relief amid ongoing cost-of-living pressures.