DA Hike Update 2026: Great news for central employees and pensioners! There is going to be an increase in dearness allowance in March, know how much the salary will increase.

New Delhi. The first big gift of the year 2026 is going to be received soon for lakhs of central government employees and pensioners. To provide relief from the blow of inflation, the government is going to announce the first increase of the year in Dearness Allowance (DA) and Dearness Relief (DR). According to the latest data of Consumer Price Index (AICPI) released by the Labor Ministry, this time there is a strong possibility of increase in DA by 3% to 4%. After the approval of the Cabinet, its official announcement can be made by the end of March 2026, which will be considered effective from January 1, 2026. How is the DA rate decided? Understand the mathematics: Dearness Allowance is directly linked to the retail inflation rate of the country. It is calculated on the basis of All India Consumer Price Index (AICPI) released by the Labor Bureau of the Labor Ministry. By looking at the average of the index of the last 12 months, it is decided how much increase in allowance is needed to maintain the purchasing power of the employees. If the current DA is 50% or more, then the next 3-4% increase will bring a significant jump in the total salary of the employees. 3 months of arrears will be received: March salary will be bumper. In the style of Amar Ujala, let us tell you that even if the announcement is made in March, but it will be backdated i.e. 1 January. Will be implemented from 2026. This means that employees and pensioners will get the arrears for the months of January and February in lump sum along with the salary for March. Example: If the basic salary of an employee is ₹ 30,000 and there is an increase in DA by 4%, then his monthly salary will increase by ₹ 1,200. Along with the arrears, he will get an additional ₹ 3,600 in March. Support of ‘Dearness Relief’ (DR) for pensioners. This news is no less than a lifesaver for more than 65 lakh pensioners. The increase in Dearness Relief will increase their monthly pension, making it easier to handle medicines and other household expenses. The aim of the government is that retired employees should get security in the same proportion as serving employees. Impact on the economy: The market will be vibrant. When additional money reaches the pockets of crores of employees and pensioners, the demand in the market increases. This increase around Holi will increase cash flow in the market, which will directly benefit sectors like retail trade and automobile. Although this will put an additional burden of thousands of crores of rupees on the government exchequer, it is an essential step for the morale of the employees and economic stability.