Centre Approves 2% DA Hike for Employees and Pensioners
- By Thetripurapost Desk, New Delhi
- Apr 18, 2026
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The central government has approved a 2% increase in Dearness Allowance (DA) and Dearness Relief (DR) for its employees and pensioners, raising the rate from 58% to 60%. The hike will be effective from January 1, 2026.
The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi on Saturday (April 18), is expected to benefit around 5.05 million central government employees and 6.83 million pensioners.
According to official estimates, the move will increase the government’s annual expenditure by approximately ₹6,791 crore.
The previous revision in DA was announced in October 2025, when it was raised from 55% to 58%, effective July 1, 2025, with arrears paid to beneficiaries.
Dearness Allowance (DA) and Dearness Relief (DR) are revised twice a year—in January and July—to help offset the impact of inflation. DA is calculated as a percentage of basic pay and is aimed at protecting the real income of employees amid rising prices.
8th Pay Commission Demands Gain Momentum
The DA hike comes amid growing demands from employee unions for a major revision in salary structures under the proposed 8th Pay Commission.
The National Council–Joint Consultative Machinery (NC-JCM) has recommended a fitment factor of 3.83. If implemented, this could raise the minimum basic pay from ₹18,000 to around ₹69,000.
The body has also proposed including dependent parents under the definition of family and addressing pay anomalies.
While the timeline for the implementation of the 8th Pay Commission has not yet been officially announced, there is speculation that it may be introduced soon, with full implementation possibly taking until 2028.