DA Hike Big Update: DA of central employees increased to 60%! Arrears of so many months will be credited to the account

DA Hike Big Update: A very strong and good news has emerged for central employees and pensioners. Giving relief from rising inflation, the Central Government has officially approved the increase in Dearness Allowance (DA) of central employees and Dearness Relief (DR) of pensioners.

This decision of the government is based on the formula approved under the recommendations of the 7th Central Pay Commission. After this decision, there is going to be a huge jump in the take-home salary and monthly pension of more than 50 lakh central employees and more than 68 lakh pensioners of the country, which is a big relief for them in this era of inflation.

This time, the 2% increase in dearness allowance has been approved in the Union Cabinet meeting chaired by Prime Minister Narendra Modi. After this new increase, the total dearness allowance of central employees has increased from 58% to 60%. This order of the government will be considered effective from January 1, 2026.

This simply means that the entire dues of the previous months i.e. arrears will be given to the employees and pensioners by adding them to their upcoming salary. This 2% increase will put a financial burden of approximately ₹6,791.24 crore annually on the government exchequer.

If we talk about how this increase will affect your pocket and how much your salary will increase, then it has a direct connection with your basic pay. For example, if the basic salary of a central employee is ₹ 18,000 per month, then a 2% increase will result in a direct increase of ₹ 360 in his salary every month.

At the same time, senior officers or employees whose basic salary is ₹ 56,100 will see a sharp increase of about ₹ 1,122 in their monthly income. Apart from this, the increase in dearness allowance also has a positive impact on other allowances of the employees (such as travel allowance).

DA Hike Big Update

According to the latest updates, immediately after this 2% increase, all eyes are now on the next review to be held from July 2026. Looking at the current data of All India Consumer Price Index (AICPI-IW) and rising inflation trend, experts estimate that in the next revision to be held in July, DA may be increased further by 3% to 4%, due to which the total dearness allowance may reach beyond 63% to 64%.

Along with this, the demands of the employee unions regarding the formation of 8th Pay Commission and new pay matrix have also intensified, on which the government can take a major decision soon.