New Delhi, April 18, 2026: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners. This takes the DA/DR rate from 58% to 60% of basic pay or pension.
The hike is effective retrospectively from January 1, 2026, and will benefit approximately 50.5 lakh central government employees and 68.3 lakh pensioners. The annual financial burden on the exchequer is estimated at around **₹6,791 crore.
# Purpose of the Hike
Dearness Allowance and Dearness Relief are revised twice a year (January and July) based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). The adjustment helps offset the impact of rising prices and protects the purchasing power of salaries and pensions.
This is a routine biannual revision under the 7th Central Pay Commission recommendations. The previous hike raised DA from 55% to 58%, effective from July 1, 2025.
# Announcement and Implementation
Union Minister Ashwini Vaishnaw announced the decision after the Cabinet meeting. The additional DA/DR will be paid along with the salaries and pensions for April 2026, with arrears for January to March 2026 also cleared.
For a central government employee with a basic pay of ₹50,000, the monthly DA increase works out to ₹1,000 (2% of basic pay). The impact varies according to individual basic pay levels.
# Background and Context
The government periodically revises DA to compensate for inflation. With the current rate now at 60%, employees and pensioners receive a modest but regular boost in their take-home pay or pension.
This decision comes as a welcome relief amid ongoing living cost pressures. Employee associations have long demanded timely DA announcements to avoid delays in arrears.
The move is expected to provide some financial cushion to a large section of central government workforce and retirees across the country.
Sources: Official announcements and reports from PIB, DD News, and leading national dailies.
For More News Updates Follow Us On www.tconews.in
