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Good news has arrived for Indian Railways employees. The Railway Board has announced a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR). This increase will be effective from January 1, 2026. This implies that employees will receive four months' worth of arrears. With this hike, the DA has now risen from 58% to 60%.

The benefits of this increase will extend to all serving railway employees, pensioners, and family pensioners who fall under the purview of the 7th Pay Commission. It is expected that the revised rates and arrears will be reflected in the salaries and pensions disbursed in the month of May, thereby increasing the take-home pay for employees.

**DA Revisions Occur Twice a Year**

The Dearness Allowance is revised twice annually: the first revision takes effect from January 1st, and the second from July 1st. Changes to the DA are determined based on data from the All India Consumer Price Index (AICPI) with the objective of mitigating the impact of inflation. In April, the Central Government had also announced a 2% hike in the DA for all its employees.

**Benefiting 1.2 Million People**

Indian Railways stands as one of the country's largest employers. This decision is set to benefit approximately 1.2 million employees and pensioners, resulting in an increase in their remuneration.

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