Central Government Employees to See Salary Boost with DA Hike Effective January 2026
DA hike: How much monthly increase in salary does each employee level get from 2% jump in dearness allowance?
Mint
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The Ministry of Finance of India has announced a 2% increase in Dearness Allowance (DA) for central government employees, raising it from 58% to 60% of Basic Pay, effective January 1, 2026. This change will benefit approximately 50 lakh employees and 65 lakh pensioners, providing relief amid rising inflation.
- 01Dearness Allowance increased from 58% to 60% of Basic Pay.
- 02Effective date for the DA hike is January 1, 2026.
- 03Around 50 lakh central government employees will benefit from the increase.
- 04Approximately 65 lakh retired pensioners will also see an increase in their allowances.
- 05DA is adjusted biannually based on the All-India Consumer Price Index.
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On April 22, 2025, the Ministry of Finance of India announced a 2% increase in Dearness Allowance (DA) for central government employees, effective from January 1, 2026. The DA will rise from 58% to 60% of Basic Pay, impacting approximately 50 lakh employees and 65 lakh retired pensioners. This adjustment aims to alleviate the financial strain caused by inflation on government employees and pensioners. The DA is calculated based on the All-India Consumer Price Index (AICPI), which tracks retail price fluctuations. The increase is expected to enhance take-home pay, providing some relief to households affected by rising living costs. The Ministry of Defence and Ministry of Railways will issue separate orders for their respective personnel regarding this DA hike.
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The increase in Dearness Allowance will enhance the monthly salaries of government employees, providing them with additional financial support amidst rising inflation.
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