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Cabinet Approves 2% DA Hike for Central Staff, Pensioners from Jan 2026

The Union Cabinet has approved a 2% hike in Dearness Allowance for central government employees and Dearness Relief for pensioners. The increase will raise the rate from 58% to 60% of basic pay/pension, effective from January 1, 2026. Information and Broadcasting Minister Ashwini Vaishnaw stated the move will benefit over 1.18 crore individuals. The decision follows the accepted formula based on the 7th Central Pay Commission's recommendations.

Key Points: 2% DA Hike for Central Govt Employees, Pensioners Approved

  • 2% increase in DA/DR
  • Effective from January 1, 2026
  • Benefits over 50 lakh employees
  • Benefits over 68 lakh pensioners
  • Total cost of Rs. 6,791 crore
2 min read

Union Cabinet approves 2 per cent increase in Dearness Allowance for central government employees, Dearness Relief for pensioners

Union Cabinet approves 2% increase in Dearness Allowance & Relief, benefiting over 1.18 crore employees and pensioners from January 2026.

"DA and DR have been increased... which will cost the Government of India a total of Rs. 6,791 crore. - Ashwini Vaishnaw"

New Delhi, April 18

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners from January 1, 2026.

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

P
Priyanka N
Good news for my parents who are central government pensioners! 🎉 Every rupee counts with the way prices of vegetables and essentials are rising. Hope this trend continues to protect their savings.
A
Aman W
While this is positive for a specific section, what about the vast majority of private sector employees and informal workers? Our DA is zero. The government should also focus on controlling inflation at the root for everyone's benefit.
S
Sarah B
Interesting to see the scale - over 1 crore people benefiting. The fiscal cost of nearly 6800 crores is significant. It's a necessary expenditure, but transparency in how it's managed within the budget is key.
K
Karthik V
Jan 2026 is quite far away. Why such a long lead time? By then, inflation would have eroded much of the value. Should be implemented sooner to provide real-time relief. Just my two paise.
M
Meera T
As a daughter of a retired government officer, I can say this DR increase is a lifeline. It's not just a number; it's about dignity and security in old age. Thank you for recognizing their service.

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