Union Cabinet clears 2% DA hike for Central government employees, pensioners

New-Delhi: The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for government employees and pensioners, according to sources following the Cabinet meeting.

With this revision, DA will rise from 58 per cent to 60 per cent of basic pay. The change will come into effect from January 2026.

The increase will not only help serving employees but also pensioners, who will receive a similar rise in Dearness Relief (DR).

Dearness Allowance is revised twice every year once in January and again in July. These changes are based on inflation data, especially the Consumer Price Index for Industrial Workers (CPI-IW). The latest increase reflects current inflation levels, which have been relatively stable compared to earlier periods.