DA Hike: Dearness Allowance Increased; Great News for Central Government Employees as Government Approves 2% Raise

DA Hike 2026: On April 18, 2026, the Central Government gave the green light to a 2 percent increase in the Dearness Allowance (DA) for its employees. This decision brings great news to government employees.

DA Hike Latest News: The Government of India delivered major good news to central government employees today. According to sources, the Union Cabinet has approved a two percent hike in the Dearness Allowance for central government employees and pensioners. Following this decision, the DA for employees will now increase.

Total Dearness Allowance Reaches 60 Percent

Following this government decision, the total Dearness Allowance for employees has risen from 58 percent to 60 percent. This increase will directly benefit approximately 5 million government employees and over 6.5 million pensioners, resulting in a rise in their monthly salaries and pensions.

How Much Will Salaries Increase Now?

It is worth noting that if a central government employee has a basic pay of ₹36,500, their DA—calculated at the new 60 percent rate—will now amount to ₹21,900. A significant highlight is that employees will also receive arrears dating back to January. The new rule is deemed effective from January 1, 2026. This means that employees will not only receive their increased salary for the upcoming month but will also be paid the outstanding arrears for the previous three months—namely January, February, and March—in a lump sum.

Employees Had Been Waiting for a Long Time

This move by the Central Government brings significant relief to those employees who had been awaiting this announcement for some time and had been demanding an increase in their income amidst rising inflation. This hike comes at a time when employee unions are demanding major changes to the pay structure under the 8th Pay Commission.

Why is Dearness Allowance Increased?

To compensate government employees for their expenses in the face of rising inflation, the government increases the Dearness Allowance twice a year—in January and July. It is calculated based on data (CPI-IW) released by the Ministry of Labour, which indicates the extent to which the prices of essential commodities have risen. Simply put, as market prices increase, the government raises this allowance to preserve the value of your salary.