A very big and relief news has come out for lakhs of central government employees and pensioners. According to the new information received on August 18, the Union Cabinet has given the green signal to the 2 percent increase in Dearness Allowance (DA).
After this important decision of the Cabinet, the dearness allowance of central employees will increase from 58 percent to 60 percent. About 50 lakh central employees and more than 65 lakh pensioners of the country are expected to directly benefit from this step of the government. With this increase in DA, while the take-home salary of the employees will increase, there will also be a significant increase in the monthly pension of the pensioners.
How much will the money increase as per basic salary?
The calculation of dearness allowance can be understood with an easy example. If the basic salary of a central employee is ₹ 36,500, then according to the new rate of 60 percent, his dearness allowance will now be ₹ 21,900. However, the total in-hand salary of any employee does not depend only on DA but also includes other allowances like House Rent Allowance (HRA), Travel Allowance (TA) and various deductions.
Will employees get the outstanding arrears?
Along with the increase in salary, the eyes of the employees are also fixed on the arrears. If this 2% increase in DA is considered to be applicable from January 1, 2026, then all the central employees and pensioners will also be given the outstanding arrears from January till now. This means that along with the new rates, there is every possibility for the employees to get the lump sum arrears of the previous months.
Discussion on increase in HRA also intensifies
After the increase in DA, now discussions are also quite heated regarding the possible amendment in House Rent Allowance (HRA) of Central Government employees. If the increase in HRA rates is also approved by the government, then there will be an even greater jump in the total monthly income of the employees.
After all, why does the government increase dearness allowance?
Due to continuously increasing inflation, the prices of essential commodities of daily life increase, which has a direct impact on the purchasing power of common employees. To maintain this financial balance, the government revises the Dearness Allowance (DA) twice every year.
This change in DA is decided on the basis of Consumer Price Index (CPI-IW) data released for industrial workers. On the other hand, major changes are expected in the entire pay structure of the employees from the upcoming 8th Pay Commission. In such a situation, this 2% increase in DA will provide immediate financial relief to the central employees in the era of inflation.