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PPF 7.1%

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2% DA Hike Approved – 60% DA from January 2026 for Central Govt Employees & Pensioners

2% DA Hike Approved – 60% DA from January 2026 for Central Govt Employees & Pensioners
2% DA Hike January 2026

Cabinet Approves 2% DA Hike – Total DA/DR now 60% from January 2026

Announcement by: Union Cabinet, Government of India

Effective Date: 01 January 2026 (retrospective)

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 2% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. The total DA/DR rate now stands at 60% (up from 58%).

Key Highlights

  • Effective Date: Retrospective from 1st January 2026
  • Arrears: Payable for January, February & March 2026
  • Beneficiaries: Over 50 lakh Central Government employees + 68 lakh pensioners
  • Background: Based on AICPI-IW data ending December 2025

This hike comes amid ongoing demands from employee unions ahead of the 8th Pay Commission recommendations.

📄 Official Press Release (PDF): View / Download

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Frequently Asked Questions (FAQ)

1. What is the new DA rate from January 2026?

Total DA/DR is now 60% after the 2% hike.

2. From when is the hike effective?

Retrospective from 1st January 2026.

3. Will arrears be paid?

Yes – arrears for January, February and March 2026 will be released.

4. How many people will benefit?

More than 50 lakh employees and 68 lakh pensioners.