New Delhi, Aug. 9 -- Dearness Allowance (DA) is a percentage of the basic salary component for central government employees and pensioners which seeks to address rising cost-of-living. It is reviewed twice a year, new announcements are usually made annually in March and October, with rollouts in July the same year and January in the next year.

Over 1 crore workers, comprising nearly 50 lakh central government employees and close to 65 lakh central government pensioners, including defence and railway personnel and retirees, benefit from the DA hikes and corresponding increase in Dearness Relief (DR).

Notably, DA was last revised by 2% in April this year, taking it from 58% to 60% of basic salary, with effect from 1 January 2026. In the f...