DA Increased by 2% to 60% After Delay, Over 1 Cr Employees to Gain

The Centre on Saturday approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, taking the total DA to 60% of basic pay from the existing 58%.

The revised DA will be effective from January 2026 and will also apply to pensioners, who will receive a corresponding increase in Dearness Relief (DR). The move is expected to benefit over 1 crore employees and pensioners, offering a modest boost to monthly incomes.

Dearness Allowance, a cost-of-living adjustment, is paid as a percentage of basic pay to offset the impact of inflation and protect real income. It is typically revised twice a year—in January and July—based on changes in the Consumer Price Index for Industrial Workers (CPI-IW).

While the latest hike is relatively modest compared to previous revisions, it reflects the current inflation trend. For instance, an employee with a basic salary of ₹30,000 will see an increase of about ₹600 per month following the revision.

Delay Triggers Employee Concerns

The announcement comes after a delay that had triggered concern among employee unions. The Confederation of Central Government Employees and Workers had flagged that DA revisions are usually announced by late March, with arrears paid soon after.

The National Council Joint Consultative Machinery (NC-JCM) had also written to the Cabinet Secretary, urging timely implementation of the DA hike. In a letter dated April 13, its secretary Shiva Gopal Mishra said the delay had created "discontent and apprehensions" among employees and pensioners.

The Confederation also organised a nationwide lunch-hour protest earlier this week to highlight the issue and press for an early announcement.

Larger Pay Revision Demands Persist

The DA hike comes amid broader demands from employee groups for structural changes in the pay framework, particularly ahead of the proposed 8th Pay Commission.

In its memorandum to the government, the NC-JCM has sought a higher fitment factor of 3.83, which, if implemented, could raise the minimum basic pay from ₹18,000 to around ₹69,000.

While the DA revision offers immediate relief, employee representatives continue to push for a comprehensive salary overhaul, linking their demands to inflation trends and evolving cost-of-living pressures.