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DA Hike 2026: The central government has approved a 2 percent increase in dearness allowance (DA) for its employees on April 18, 2026. This decision brings great news to government employees.

DA Hike: Dearness Allowance increased

DA Hike Latest News: The Indian government today delivered significant good news to central government employees. According to sources, the Union Cabinet has approved a two percent increase in dearness allowance for central government employees, pensioners, and employees. This decision will result in an increase in their DA.

Total dearness allowance increased to 60 percent

Following this government decision, the total dearness allowance for employees has now increased from 58% to 60%. This increase will directly benefit approximately 5 million government employees and over 6.5 million pensioners, increasing their monthly salaries and pensions.

How much will the salary increase now?

It should be noted that if a central government employee's base pay is ₹36,500, then at 60%, their DA will now be ₹21,900. Importantly, employees will also receive arrears from January. The new rule will be effective from January 1, 2026. This means that employees will not only receive the next month's increased salary, but also the arrears for the previous three months—January, February, and March—will be paid in one lump sum.

The staff had been waiting for a long time.

This move by the central government brings significant relief to employees who have been awaiting this announcement for some time and demanding an increase in their income amid rising inflation. This increase comes at a time when employee organizations are demanding major changes to the pay structure under the 8th Pay Commission.

Why is dearness allowance increased?

The government increases dearness allowance twice a year, in January and July, to offset the expenses of government employees due to rising inflation. It's calculated based on data (CPI-IW) released by the Ministry of Labor, which shows the rise in prices of essential commodities. Simply put, as market prices rise, the government increases this allowance to maintain the value of your salary.