Cabinet clears 2% DA hike for employees, pensioners; over 1.18 cr to benefit
19/04/2026
New Delhi, Apr 18: The union Cabinet on Saturday approved an additional instalment of Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for pensioners, raising both by 2 percentage points with effect from January 1, 2026, in a move aimed at cushioning the impact of rising prices.
Announcing the decision after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the increase takes the DA and DR rates from the existing 58% to 60% of basic pay and pension. "The additional instalment is intended to compensate employees and pensioners against price rise," he said, underscoring that the revision follows the standard formula adopted by the government.
The financial implication of the hike is significant, with the combined annual burden on the exchequer estimated at Rs 6,791.24 crore. The decision is expected to benefit around 50.46 lakh Central government employees and 68.27 lakh pensioners, together covering more than 1.18 crore individuals across the country. Dearness Allowance and Dearness Relief are revised periodically to offset inflation and protect the real income of salaried employees and retirees. The current increase, officials noted, is in line with the formula based on the recommendations of the 7th Central Pay Commission, which links revisions to changes in the Consumer Price Index.
The latest hike comes amid persistent concerns over inflationary pressures on household budgets, and is likely to provide some relief to millions of families dependent on government salaries and pensions. It also reflects the Centre's continued adherence to a structured mechanism for wage adjustments, even as broader discussions on future pay commission frameworks remain ongoing.
Share This Story |
|
Comment On This Story |
|
|
|
|