DA-DR Hike: The government has announced DA and DR hikes for more than 11.8 million central government employees and pensioners. A 2% increase in dearness allowance and dearness relief has been approved, but the pressing question is when will this benefit take effect? Will this increase be reflected in the salaries and pensions for April 2026? In reality, this increase will be effective from January 2026.
Consequently, employees and pensioners are expected to receive arrears for three months, from January to March, along with their April salary or pension. This has led to heightened curiosity among employees and pensioners regarding the increased salary and arrears.
Which month’s salary will the 2% DA hike be added to, April or May? Central government employees and pensioners are optimistic that the increased dearness allowance (DA) will be included in their April salaries. However, there remains a level of uncertainty. The All India NPS Employees Federation (AI-NPS-EF), representing central government employees, points out that the DA hike was announced on April 18th, and the processing of April salaries may have already commenced.
Thus, the chances of the increased DA hike being part of this month’s salary appear slim. According to the employee organization, it is more probable that the 2% DA hike will be reflected in the May 2026 salary. Likewise, pensioners might also see an increased DR in their May pension. Notably, the salary and pension amount received in May could include arrears for four months, from January to April, potentially resulting in a larger sum for employees and pensioners.
There are numerous speculations regarding the delay in announcing the DA-DR hike. It is suggested that administrative procedures and paperwork might be the main reasons for this delay, rather than any policy changes, or that the preparations for the formation of the 8th Pay Commission and administrative coordination at various levels could have postponed the announcement.
Whatever the reason, the recent Union Cabinet meeting chaired by Prime Minister Narendra Modi decided to increase DA by 2% for the January-June cycle. This decision will increase the DA of central employees from 58% to 60%. The dearness allowance (DR) for pensioners has also been increased from 58% to 60%. The government has approved this increase effective January 2026.
