New Delhi, July 18 -- Dearness Allowance (DA) is a percentage of employees' and pensioners' basic salaries that aims to mitigate the impact of rising living costs for central government employees and retired pensioners, providing a buffer against inflationary pressures.

Updated biannually using data from the All-India Consumer Price Index (AICPI), new announcements are made in March and October, with 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.

About 50 lakh central government employees and around 65 lakh retired central government pensioners, including defence personnel and retirees, will benefit from an increas...