Dearness Allowance Raised By 2% For Central Government Employees

The Centre has increased the Dearness Allowance (DA) by two per cent for all government employees.

The increase will be effective from 1 January 2026 - that means employees and pensioners will receive arrears for the previous months. 

The previous DA rate was 58 per cent of basic salary. This has now increased to 60 per cent, providing an increase in take-home pay amid rising living costs. Employees with a basic salary of Rs 18,000 may see their total pay rise to about Rs 28,800. At Rs 29,200 basic pay, salaries could increase to around Rs 46,720. Senior officials with Rs 2.5 lakh basic pay could see salaries cross Rs 4 lakh.

The government announces the DA hike twice a year - for January and July. The notification usually comes later, often around festivals like Holi or Diwali. This time, however, there was discontent among the central government employees as the DA announcement was delayed. In 2025, the hike was announced on 28 March.

All eyes on the 8th Pay Commission

The DA hike comes at a time when pressure is mounting from employee unions for a comprehensive revamp of pay structures under the proposed 8th Pay Commission.

In a memorandum submitted to the government, the National Council-Joint Consultative Machinery (NC-JCM) called for a substantial upward revision in salaries - seeking a minimum basic pay of Rs 69,000, and a fitment factor of 3.83. If the demand is accepted, the minimum basic pay could rise sharply from the current Rs 18,000 to about Rs 69,000, representing a major overhaul of the existing pay framework.

The other demands include an annual increment of 6 per cent, HRA minimum slab of 30 per cent, restoration of old pension schemes, two increments at the time of promotion with a minimum benefit of Rs 10,000, and reforms in gratuity calculation.