New Delhi, April 18 -- The Cabinet on Saturday approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, offering a modest boost to compensation amid growing demands of broader pay revisions, according to a report by Times of India.

The latest hike will take the total DA from 58% to 60% of basic pay. It will be effective from January 2026 and will also apply to pensioners, who will receive a corresponding increase in Dearness Relief (DR).

The DA was last revised by the government in October, when it was hiked from 55% to 58%. The change was made effective from July 1, 2025, with arrears paid for the intervening period, benefiting both serving employees and pensioners.

The development also comes ...