New Delhi, July 3 -- The Finance Ministry in April announced 2% increase in Dearness Allowance for central government employees and pensioners with effect from 1 January 2026, effectively taking DA to 60% of basic pay from 58%.

Notably, DA is a percentage of employees' pay aimed at helping households manage increased cost-of-living. It is provided by the central government for its employees and retired pensioners and is not offered by private sector employers.

Around 50 lakh central government employees and some 65-lakh retired central government pensioners, including defence and railway staff and retirees benefit from DA hikes. Notably, there are 18 levels of employees, and the increase in salary for each will depend on the pay matrix ...