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2pc DA hike approved for Central Govt employees, pensioners

By THEBUSINESSBYTES.COM 10 hours ago Business

2pc DA hike approved for Central Govt employees, pensioners

THEBUSINESSBYTES BUREAU

NEW DELHI, APRIL 18, 2026

In a significant relief aimed at cushioning the impact of rising prices, the Union Cabinet chaired by Prime Minister Narendra Modi has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2026.

The latest decision raises the DA and DR by 2 percentage points — from the existing 58percent to 60percent of Basic Pay and Pension — providing a timely financial boost to millions of households grappling with inflationary pressures.

The move is set to benefit approximately 50.46 lakh Central Government employees and 68.27 lakh pensioners, collectively impacting over 1.18 crore individuals across the country. The combined annual financial implication of this increase on the government exchequer is estimated at ₹6,791.24 crore.

Officials noted that the revision follows the established formula based on the recommendations of the 7th Central Pay Commission, which links DA adjustments to changes in the cost of living index. The periodic revision ensures that salaries and pensions retain their real value amid fluctuating market conditions.

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