New Delhi, May 27 -- Dearness Allowance (DA) and dearness relief (DR) are a percentage of employees' and pensioners' basic salary specifically aimed at mitigating inflationary impact on households of central government employees.

An increase in DA and DR gives central government employees and retirees higher in-hand pay and a buffer against rising living costs. It is usually updated bi-annually by the All-India Consumer Price Index (AICPI). New announcements are made in March and October, followed by rollouts in January and July.

The last hike was announced in April, when the Finance Ministry increased DA from 58% to 60% of basic salary, effective from 1 January 2026.

DA is a component of central and public sector employees' salary bre...