Government hikes DA by 2% for Central staff, pensioners from January 1
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission
The government on Saturday approved a 2 per cent increase in Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners, effective January 1, 2026, providing additional cushion against rising prices.
The decision, taken at a cabinet meeting chaired by Prime Minister Narendra Modi, raises the DA from the existing 58 per cent to 60 per cent of basic pay or pension.
Officials said the move will benefit around 50.46 lakh Central government employees and 68.27 lakh pensioners. The combined annual financial implication for the exchequer is estimated at Rs 6791.24 crore.
The increase follows the standard formula based on the recommendations of the 7th Central Pay Commission and is aimed at offsetting inflationary pressures on salaries and pensions.
The revision comes as part of the government’s periodic adjustments to ensure that wages and retirement benefits remain aligned with the cost of living.
