Cabinet Approves 2% DA Hike for Central Govt Employees, Boost Effective January 1, 2026

New Delhi, India — April 18, 2026

In a significant move, the Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for central government employees, providing financial relief amid rising inflation. The revised DA will be effective from January 1, 2026, according to official sources.

The decision is expected to benefit millions of government employees and pensioners across the country.

Who Will Benefit from the DA Increase?

The latest DA hike will apply to all employees and pensioners covered under the Seventh Pay Commission framework, including:

• Central government employees
• Pensioners
• Family pensioners

The increase is aimed at offsetting the impact of inflation on salaries and pensions.

DA Rate Progression: Recent Changes

The Dearness Allowance has seen steady revisions in recent months:

The previous hike in October 2025 raised DA from 55% to 58%, and arrears for that period were also disbursed to employees and pensioners.

Financial Impact on Employees

The latest increase to 60% DA is expected to lead to a noticeable rise in take-home salaries and pension payouts. While the percentage hike may appear modest, its cumulative impact is significant for households dependent on government income.

Why DA Matters

Dearness Allowance is a key component of government salaries designed to neutralize inflation. It is revised periodically based on cost-of-living changes, ensuring that employees’ real income remains stable.

What’s Next?

With this approval, employees can expect updated salary slips reflecting the new DA rate, along with potential arrears depending on implementation timelines.