Mumbai, April 18: Central government employees have received encouraging news as the government announces a 2% increase in the dearness allowance (DA). This adjustment raises the DA to 60%. According to a report from the Times of India, the Union Cabinet approved this increase on Saturday. Additionally, the dearness relief (DR) for pensioners has also been raised by 2%. Thus, both DA and DR have been increased by the same percentage.
Employees Will Receive 3 Months of Arrears
The new DA rate will take effect from January, meaning that in April, employees will receive arrears for January, February, and March in their salaries.
Key Highlights
- DA for central government employees has been raised from 58% to 60%.
- Pensioners will also benefit from a 2% increase in Dearness Relief (DR).
- The revised DA will be applicable from January 2026.
This decision comes at a time when employee organizations are pushing for significant changes to the salary structure under the proposed 8th Pay Commission. Established in November of last year, this commission is expected to provide recommendations regarding salary structures, allowances, and pensions for central government employees within 18 months.
This marks a notable delay in the DA announcement for central government employees. Typically, the government announces DA for the January-June period around Holi in March. However, this year, the announcement was made in April, marking the first such delay in a decade. The last DA adjustment occurred in October, when it increased from 55% to 58%, effective from July 1, 2025.
The central government revises the dearness allowance (DA) and dearness relief (DR) for employees and pensioners biannually—in January and July. These adjustments aim to counteract inflation and help maintain living standards. The newly formed Eighth Pay Commission is expected to submit its recommendations by May 2027, with implementation anticipated in January 2026.
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