The Union Cabinet approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners. This raises the total DA from 58% to 60% of the basic pay. Approximately 50.5 lakh central government employees will benefit from this decision. An estimated 68.3 lakh pensioners will also see an increase.
The increase is effective retrospectively from January 1, 2026. Beneficiaries will receive arrears for previous months along with their upcoming salary. The government’s annual expense will rise by ₹6,791 crore due to this increase.
This announcement comes amid discussions regarding the formation of the 8th Pay Commission. The increase in Dearness Allowance is typically revised twice a year in relation to inflation. Details remain unconfirmed.
