New Delhi, May 6 -- Dearness Allowance (DA) for central government employees was hiked by 2% last month, effective from 1 January 2026, in accordance with the 7th Central Pay Commission (CPC). The raise increased DA from 58% of basic pay to 60%.

DA is a percentage of the basic salary of central government employees' (including railways and defence personnel and retirees), which aims to counter inflation impact on households. It increases the take-home pay for these employees.

The component is usually reviewed twice a year by the All-India Consumer Price Index (AICPI), with fresh hikes or cuts announced in early March and October and rollouts in January and July. Overall, the 7th CPC has had 10 hikes since 2021 - the highest at 11% in Ju...