2% DA, DR Hike Announced For Central Govt Employees

2026-04-18 07:03:56

(MENAFN- Kashmir Observer) Srinagar- The Union Cabinet on Saturday approved a 2 per cent increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, benefiting around 50.46 lakh employees and 68.27 lakh pensioners.
The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.

Briefing reporters after the meeting, Union Minister Ashwini Vaishnaw said the hike would impose an additional annual burden of Rs 6,791.24 crore on the exchequer.

The revised DA and DR will come into effect from January 1, 2026, marking a 2 per cent increase over the existing 58 per cent rate of basic pay and pension. With this revision, the DA and DR will rise to 60 per cent. The hike has been approved to offset the impact of rising prices.

Officials said the revised rates have been calculated in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

Reacting to the decision, Union Home Minister Amit Shah described it as a“major gift” to central government employees and pensioners.

Read Also Centre Hikes DA For Employees From July 1 Centre Hikes DA/DR By 3 Pc For Employees, Pensioners

In a post on social media, Shah said the move reflects the government's commitment to ensuring the financial security and welfare of employees and their families.

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