India approves 2% DA hike for central govt employees, pensioners

The Union Cabinet of India on Saturday approved a 2% increase in dearness allowance (DA) for central government employees, providing relief to lakhs of staff and pensioners amid rising inflation.

With the latest revision, the DA will increase from 58% to 60% of basic pay, officials said.

The revised allowance will be effective from January 1, 2026, and employees will receive arrears for January, February and March along with their April salary, they added.

The decision is expected to benefit around 49 lakh central government employees and over 70 lakh pensioners.

The announcement comes at a time when employee unions have been pressing for  constitution of the 8th Pay Commission.