Union Cabinet Approves 2% Dearness Allowance Hike for Central Government Employees

The increase raises the allowance from 53% to 55%, offering modest salary adjustments to offset inflation.

The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for central government employees, raising it from 53% to 55%.
This bi-annual adjustment aims to help employees and pensioners manage inflation by increasing their take-home pay.
The DA is calculated using the All India Consumer Price Index for Industrial Workers (AICPI-IW), with data compiled by the Labor Bureau in Shimla.
The previous DA hike occurred in July 2024, when it was raised from 50% to 53%.
Discussions about the 8th Pay Commission, expected in 2026, suggest potential structural changes to DA, including its integration into basic pay.