- By Surarika Das
- Sat, 18 Apr 2026 02:09 PM (IST)
- Source:JND
The Cabinet approved a 2 per cent increase in Dearness Allowance (DA) for Central government employees. The central government was last revised in October, when it was elevated from 55 per cent to 58 per cent. With the approval of the new hike, the DA will now increase to 60 per cent.The hike was made effective from July 1, 2025, and was later implemented with arrears, benefiting both serving and retired employees.
The Indian government usually revises Dearness Allowance (DA) and Dearness Relief (DR) twice a year. Once in January and the other in July, as a part of its compensation framework for employees and pensioners. It is made to offset the effect of inflation and help in preserving power and pensions go hand in hand with increasing prices of things.
What Is Dearness Allowance?
Dearness allowance is a cost of living adjustment paid to government employees. It is calculated as a percentage of basic pay to offset inflation. It aims to assist real income by ensuring salaries and pensions keep pace with rising prices.
The development comes amid rising demands from employee bodies for bigger changes in salary structure under the proposed 8th Pay Commission. In a memorandum submitted to the government, the National Council–Joint Consultative Machinery (NC-JCM) has proposed a much higher fitment factor of 3.83. If accepted, this could significantly increase the minimum basic pay from Rs 18,000 to around Rs 69,000, leading to a major revision in the overall pay structure.
The move is expected to benefit over 1 crore employees and pensioners, providing a modest boost to monthly incomes. For instance, an employee with a basic salary of Rs 30,000 will see an increase of Rs 600 per month following the revision.