DA, DR Hike: Another major update is here for central government employees. If you’re a central government employee, this news may be useful. Recently, the government announced a 2% increase in the dearness allowance (DA) of central government employees. With this increase, the DA has reached 60%. Now, the DA of central government employees may increase by up to 3% once again. Let’s understand the details.

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What seems to be the issue?

At present, the 2% increase in dearness allowance (DA) for central government employees is applicable for the January to June period. The upcoming announcement will pertain to the July to December period. Typically, the DA for the December semester is revealed during Navratri or Dussehra. It is anticipated that a similar announcement will occur this year as well. Various news sources suggest that the dearness allowance may rise by 3% to reach 63%. This change is expected to benefit over 10 million central government employees and pensioners.

When was the last increase in the allowance?

On April 18, the Union Cabinet made the decision to raise the dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners by two percent. Information and Broadcasting Minister Ashwini Vaishnav, discussing the outcomes of the Cabinet meeting led by Prime Minister Narendra Modi, stated that this increase in both DA and DR will impose an annual burden of Rs 6,791.24 crore on the government’s finances. This two percent rise from the current rate of 58 percent of basic pay or pension is intended to offset inflation. The additional DA for central government employees and DR for pensioners will be effective from January 1, 2026.

Rajasthan government has also given a gift

Meanwhile, on the instructions of Rajasthan Chief Minister Bhajan Lal Sharma, a two percent increase in dearness allowance and dearness relief has been approved in the state. This will result in a two percent increase in dearness allowance for state employees and pensioners.
Now, under the seventh pay scale, state employees and pensioners will receive an increased dearness allowance or dearness relief from 58 percent to 60 percent from January 1, 2026. This decision will benefit approximately 7.02 lakh employees and 5.44 lakh pensioners. Panchayat Samiti and Zila Parishad employees will also benefit from this increase. Employees will be paid the increased dearness allowance in cash from their May 2026 salary payable in June.