New Delhi, May 5 -- Dearness Allowance (DA) or dearness relief (DR) is a percentage of employees' basic salary intended to address the inflationary impact on households of central government employees. A rise in DA gives employees a higher in-hand salary and a buffer against rising living costs.

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 of the same year.

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

Notably, th...