Centre gives big relief to govt employees, hikes DA, DR by 2 per cent

In a major relief to central government employees, the Union Cabinet on Saturday hiked their DA and DR by 2 per cent, taking it to 60 per cent of the basic pay.

The hike will cost Rs 6,791 crore to the exchequer.

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“Another very big decision was taken today. I would like to extend my heartiest congratulations. DA and DR have been increased for all our central government employees and pensioners, which will cost the Government of India a total of Rs 6,791 crore,” Union Minister Ashwini Vaishnaw said.

Vaishnaw further stated, “Basically, DA and DR will become 60% of the basic pay from January 1, 2026. It has been increased by 2%, from 58% to 60%. It will become 60% of the basic pay.”

The decision is set to benefit about 50 lakh central government employees and 68 lakh pensioners.

Welcoming the move, Union Home Minister Amit Shah said that the decision reflects the Narendra Modi government’s commitment to ensure financial security of employees and their families.

“Big relief for central government employees from the Modi government! Today, the Cabinet approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners,” Shah said on X.

“The decision reflects the Modi government’s commitment to the financial security of employees and their families,” he added.

This increase will be effective from January 1, 2026.