New Delhi, Oct. 12 -- Revised twice annually based on data from the All-India Consumer Price Index (AICPI), Dearness Allowance (DA) is a percentage of employees' basic salary aimed at mitigating cost-of-living impact on households of central government employees. A DA hike gives employees a higher in-hand salary and a buffer against inflation.

New announcements are usually made in March and October, with rollouts in July and January. Notably, this year, the Finance Ministry in April announced DA hike of 2% for all central government employees and pensioners (including railways and defence personnel), effective from 1 January 2026. This increased the component to 60% of basic pay from 58%.

For calculation purposes, DA is separated into t...