DA Hike: The central government has shared some exciting news for both employees and pensioners. They’ve approved a 2 percent rise in the dearness allowance (DA). This adjustment will enhance the salaries of employees, positively impacting around 11.9 million individuals. The increase was based on the AICPI-IW, and the government typically revises DA biannually. Government employees will also receive back pay along with the updated allowance.
A wonderful benefit has been granted to central government employees. The Cabinet has sanctioned a 2 percent rise in the dearness allowance (DA). This adjustment will elevate the DA from 58 percent to 60 percent, effective from January 1, 2026. Approximately 11.9 million central government employees and pensioners will reap the rewards of this change.
Employees have eagerly awaited this announcement for quite some time. Previously, the DA was raised from 55 percent to 58 percent in October 2025, effective from July 1, 2025. Now, the increase for January 2026 has been revealed in April 2026, bringing relief to both employees and pensioners.
The government adjusts the DA and dearness allowance (DR) twice a year, in January and July. Typically, the January increase is announced by the end of March, but this time there was a minor delay. Experts suggest that this delay was due to administrative processes. The enhanced allowance will now be disbursed along with back pay.
This increase arrives at a moment when employee organizations are advocating for the 8th Pay Commission. The National Council-Joint Consultative Mechanism (NC-JCM) has proposed a fitment factor of 3.83, which could significantly raise the minimum basic salary. While this DA increase isn’t directly tied to the 8th Pay Commission, employees remain optimistic.
DA is determined based on the All India Consumer Price Index (AICPI-IW). This year, the increase is around 2 percent. The previous rise in July 2025 also provided considerable advantages. The government periodically increases DA based on inflation to ensure that employees’ actual income is not affected.
The dates and rates of DA hike in the last few years have been as follows: 58% (3% increase) on 6 October 2025, 55% (2% increase) on 2 April 2025, 53% (3% increase) on 21 October 2024, 50% (4% increase) on 12 March 2024, 46% (4% increase) on 20 October 2023, 42% (4% increase) on 3 April 2023.
Previously, the hikes were announced at 38% (4%) on October 3, 2022, 34% (3%) on March 31, 2022, 31% (3%) on October 25, 2021, and 28% (11%) on July 20, 2021. This time, the hikes were delayed, marking the first time in the last 10 years. Typically, the January hikes are announced by March, but this time, the Cabinet approved them in April.
Previously, the hikes were announced at 38% (4%) on October 3, 2022, 34% (3%) on March 31, 2022, 31% (3%) on October 25, 2021, and 28% (11%) on July 20, 2021. This time, the hikes were delayed, marking the first time in the last 10 years. Typically, the January hikes are announced by March, but this time, the Cabinet approved them in April.
DA is always calculated based on basic pay. The impact of this additional 2% increase will vary across pay levels. This means that every employee’s salary will not receive the same increase, but will be determined based on their basic pay.
