Cabinet Clears 2% DA, DR Hike For Central Government Employees, Pensioners
The approval for the hike in Dearness Allowance (DA) and Dearness Relief (DR) will benefit about 50.46 lakh central government employees and 68.27 lakh pensioners.
Published : April 18, 2026 at 4:08 PM IST
|Updated : April 18, 2026 at 4:38 PM IST
New Delhi: The government on Saturday increased Dearness Allowance (DA) and Dearness Relief (DR) by 2 per cent, benefiting about 50.46 lakh central government employees and 68.27 lakh pensioners.
The combined impact on the exchequer on account of an increase in both Dearness Allowance and Dearness Relief would be Rs 6,791.24 crore per annum, said Information and Broadcasting Minister Ashwini Vaishnaw while briefing about decisions taken at the Cabinet meeting chaired by Prime Minister Narendra Modi.
The approval to release an additional instalment of DA to central government employees and DR to pensioners with effect from January 1, 2026, represents an increase of 2 per cent over the existing rate of 58 per cent of the Basic Pay/Pension, to compensate for the price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The Dearness Allowance is a fundamental cost-of-living adjustment designed to support government employees and pensioners. It functions specifically to offset the impact of inflation on fixed incomes. The allowance is calculated as a percentage of the basic pay and undergoes periodic revisions based on established inflation indices to maintain the purchasing power of the workforce.
The allowance, linked to inflation, is revised twice a year, typically in January and July. It is worked out based on the Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau under the Labour Ministry.
Also Read
