DA Hike: Good news for central government employees. The central government has provided a significant benefit to its employees. The government has raised the dearness allowance (DA) for employees by 2 percent. Consequently, the allowance for central employees has now reached 60 percent. According to a report from the Times of India, sources indicated that the Union Cabinet approved a 2 percent increase in the dearness allowance (DA) for central government employees on Saturday. Additionally, the dearness relief (DR) for pensioners has also been raised by 2 percent. Thus, the Union Cabinet has increased both DA and DR by 2 percent.
Employees will receive 3 months of arrears
The 2% increase in DA for central government employees will take effect from January. This implies that in April, central government employees will receive the DA for January, February, and March as arrears in their salaries.
Key Highlights
- Central government employees’ Dearness Allowance has been raised from 58% to 60%.
- Pensioners will also benefit as Dearness Relief (DR) increased by 2%.
- The revised DA will be applicable from January 2026.
This decision is made at a time when employee organizations are advocating for significant modifications to the salary structure under the proposed 8th Pay Commission. The government established the 8th Pay Commission in November of the previous year. This Pay Commission is expected to present its recommendations to the government regarding the salary structure, allowances, and pensions of central government employees. The Pay Commission aims to deliver these recommendations within 18 months.
This marks the first instance of a delay in the DA for central government employees of this magnitude. Typically, the government would decide on DA for the January-June half-year around Holi, which occurs in March. However, this year, that has not occurred. It is the first time in a decade that the government has announced DA in April. The last adjustment in DA for central government employees occurred in October, when it was increased from 55 percent to 58 percent. This increase was implemented starting July 1, 2025.
It should be noted that the central government revises dearness allowance (DA) and dearness relief (DR) for employees and pensioners twice a year—in January and July. These changes are intended to mitigate the impact of inflation and help maintain a standard of living. The government has now constituted the Eighth Pay Commission, whose recommendations are expected to be implemented in January 2026. This Pay Commission is expected to submit its recommendations to the government by May 2027.