Central Government Employees to Receive 2% Dearness Allowance Hike
DA hike: Salary calculations after 2% hike
The Economic Times
Image: The Economic Times
The Indian Cabinet has approved a 2% increase in the dearness allowance (DA) for central government employees, raising it from 58% to 60% effective January 2026. This decision will also benefit pensioners, with arrears payable from the backdate, significantly impacting monthly salaries across various pay levels.
- 01The dearness allowance (DA) for central government employees has been increased by 2%.
- 02The new DA rate is effective from January 2026, retroactively providing arrears.
- 03Monthly salary increments vary by pay level, with increases ranging from ₹360 to ₹5,000.
- 04The DA is calculated based on the All India Consumer Price Index-Industrial Workers (AICPI-IW) average.
- 05The increase follows a request from the National Council–Joint Consultative Machinery (NC-JCM) for the DA hike.
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The Indian Cabinet has officially approved a 2% hike in the dearness allowance (DA) for central government employees, increasing it from 58% to 60%. This decision, effective from January 2026, will also apply to pensioners, allowing them to receive arrears from the backdate. The National Council–Joint Consultative Machinery (NC-JCM), representing central government employees, had previously urged the cabinet secretary to expedite the DA announcement. The monthly salary increments resulting from this hike vary significantly across different pay levels. For instance, employees at Level 1 will see an increase of ₹360, while those at Level 18 will receive an additional ₹5,000. The DA is calculated based on the 12-month average of the All India Consumer Price Index-Industrial Workers (AICPI-IW), which for the period of January to December 2025 was 145.54. This hike reflects the government's commitment to adjust salaries in line with inflation, as the DA is designed to mitigate the impact of rising living costs.
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This DA hike will provide significant relief to central government employees and pensioners, helping them cope with inflation and rising living costs.
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