New Delhi, May 5 -- Dearness Allowance (DA) or dearness relief (DR) is a percentage of employees' basic salary aimed at addressing inflation impact on households of central government employees. Rise in DA gives employees higher in-hand salary and a buffer against rising cost of living.

DA is usually revised every six months by the All-India Consumer Price Index (AICPI), with new announcements in early March and October and rollouts in January and July the same year.

In April, the Ministry of Finance announced a 2% hike in DA, applicable for all central government employees and pensioners (including railways and defence personnel), effective from 1 January 2026, effectively raising the component to 60% of basic pay from previous 58%.

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