Good news for central employees: Modi cabinet approves 2 percent increase in dearness allowance

By Samira Vishwas On Apr 19, 2026

New Delhi, 19 April. In the Union Cabinet meeting chaired by Prime Minister Narendra Modi on Saturday, a two percent increase in the Dearness Allowance (DA) of central employees has been approved. This increase will be effective from January 1, 2026, which will increase the gross salary of the employees.

Also approved to issue dearness relief to pensioners

The Cabinet has also approved the release of Additional Dearness Allowance (DA) for central employees and Dearness Relief (DR) for pensioners. This increase is two percent more than the current rate of 58 percent, which is being given to reduce the impact of inflation.

DA and DR have been increased for all Central Government employees and pensioners, the total cost of which will be approximately ₹ 6791 crore per year to the Government of India. DA and DR will now be 60% of the basic pay from January 1, 2026. pic.twitter.com/h75sBytJlq
— PIB Hindi (@PIBHindi) April 18, 2026

annual close on government treasury 6,791.24 additional burden of crores of rupees

According to the government, increasing DA and DR will put an additional burden of about Rs 6,791.24 crore on the government exchequer annually. About 50.46 lakh central employees and 68.27 lakh pensioners will benefit from this decision.

About 50.46 lakh central employees and 68.27 Lakh pensioners benefit

This increase has been made as per the formula decided on the basis of the recommendations of the 7th Central Pay Commission. This decision will lead to an increase in the salary of the employees, while on the other hand, the demand for major changes in the salary structure regarding the proposed 8th Pay Commission is also increasing.

Fitment factor from NC-JCM government 3.83 demand to increase up to

Meanwhile, the National Council-Joint Consultative Machinery (NC-JCM) in a memorandum to the government has demanded increasing the fitment factor to 3.83. If this proposal is accepted, the minimum basic salary may increase from Rs 18,000 to around Rs 69,000. Fitment factor is a multiplier through which the salary of employees is decided keeping in mind inflation and cost of living.

These issues are also included in the major suggestions of NC-JCM

Apart from this, NC-JCM has also given suggestions like six percent salary increase every year, two increments on promotion and a benefit of at least Rs 10,000. If these changes are implemented, more than 50 lakh central employees and about 65 lakh pensioners of the country will be directly affected.