New Delhi, May 13 -- The Indian Railways (IR) has revised dearness allowance and dearness relief for employees and pensions by 2% with effect from 1 January 2026, effectively taking the component to 60% of basic pay, from 58% earlier.

DA and DR are a percentage of employees' and pensioners' basic salary designed to help mitigate increased cost of living. This allowance is typically revised twice annually to reflect inflation fluctuations in the cost-of-living index by the All-India Consumer Price Index (AICPI).

In two notifications, the Railway Board said DA and DR has been revised for lakhs of employees, pensioners, family pensioners, and other eligible beneficiaries covered under 7th central pay commission (CPC) framework. Notably, In...