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50 Lakh Employees, 68 Lakh Pensioners Get 2% DA Hike from Jan 2026

The Union Cabinet has approved a 2% increase in Dearness Allowance for central government employees and Dearness Relief for pensioners. The hike will raise the rate from 58% to 60% of the basic pay or pension, effective from January 1, 2026. This decision will benefit over 50 lakh employees and 68 lakh pensioners, with a total financial impact of Rs 6,791 crore on the exchequer. Information and Broadcasting Minister Ashwini Vaishnaw announced the move, stating it follows the formula based on the 7th Central Pay Commission's recommendations.

Key Points: 2% DA Hike for Central Govt Staff, Pensioners from Jan 2026

  • 2% hike in DA & DR
  • Effective from January 1, 2026
  • New rate is 60% of basic pay/pension
  • Benefits over 50 lakh employees & 68 lakh pensioners
  • Total financial implication is ₹6,791 crore
2 min read

Over 50 lakh employees, 68 lakh pensioners to benefit from Centre's decision to hike DA, Dearness Relief

Central govt employees & pensioners to get 2% DA/DR hike, raising it to 60% of basic pay. Benefit for over 1.18 crore people, costing ₹6,791 cr.

"DA and DR have been increased for all our central government employees and pensioners, which will cost the Government of India a total of Rs. 6,791 crore. - Ashwini Vaishnaw"

New Delhi, April 18

The Union Cabinet's decision on Saturday to increase DA allowance of central government employees and Dearness Relief for pensioners by 2 per cent will cost the exchequer Rs 6,791 crore.

It represents an increase of two per cent over the existing rate of 58 per cent of the Basic Pay/Pension, to compensate against price rise.

Briefing about the cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the decision will benefit over 50 lakh Central Government employees and over 68 lakh pensioners.

"Another very big decision was taken today. I would like to extend my heartiest congratulations. DA and DR have been increased for all our central government employees and pensioners, which will cost the Government of India a total of Rs. 6,791 crore. Basically, DA and DR will become 60% of the basic pay from January 1, 2026. It has been increased by 2%, from 58% to 60%. It will become 60% of the basic pay. There are a total of about 50 lakh employees and 68 lakh pensioners of the Government of India. This will be a huge benefit for all of them," he said.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, an official release said.

- ANI

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Reader Comments

S
Sarah B
While this is good news for a specific section, what about the vast majority of private sector employees and informal workers? Inflation hits everyone. The government should also focus on broader economic measures to control the cost of living for all citizens.
P
Priyanka N
Good step, but the increase is only 2%. With vegetable prices, fuel costs, and school fees going up so much, does this really match the actual inflation we are facing? The formula needs to be reviewed to reflect ground reality.
A
Aman W
This will benefit over 1 crore families directly. A positive decision before the festive season. Hope state governments also follow suit for their employees. Jai Hind!
M
Michael C
Rs. 6,791 crore is a significant fiscal outlay. It's important to ensure this spending translates into real economic stimulus and doesn't contribute further to inflationary pressures. The timing and economic impact need careful consideration.
K
Kavya N
My mother is a pensioner. She called me happily after hearing this news. For senior citizens on a fixed income, even a small increase means a lot. Thank you for recognizing their contribution. ❤️

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