Cabinet Approves 2% DA Hike from January 2026, DA Reaches 60% for Central Govt Employees & Pensioners

New Delhi, April 18, 2026: The Union Cabinet led by Prime Minister Shri Narendra Modi has approved a 2% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.

With this latest revision, the total DA/DR has now been raised from 58% to 60%, providing additional financial support to millions amid rising living costs.

The da hike decision is expected to benefit around 50.46 lakh Central Government employees and 68.27 lakh pensioners across the country. The revised rates will be effective from January 1, 2026, meaning eligible beneficiaries will also receive arrears for three months—January, February, and March 2026.

According to official estimates, the financial burden on the government due to this increase will be approximately ₹6,791 crore annually.

The DA hike follows the standard formula linked to the All India Consumer Price Index for Industrial Workers (AICPI-IW), which measures inflation trends among industrial workers.

The steady rise in the index over the past months had already indicated that DA would likely touch the 60% mark, making this announcement largely in line with expectations.

The revision has been implemented as per the recommendations of the 7th Central Pay Commission, under which DA is revised twice a year to offset inflation.

Since the hike is effective retrospectively, employees and pensioners will receive arrears for the first three months of 2026. These payments are likely to be credited after detailed implementation orders are issued by the Ministry of Finance.