India, April 18 --  The Union Cabinet has approved a 2% increase in Dearness Allowance (DA), offering some relief to central government employees and pensioners. With this revision, the DA has now risen from 58% to 60% of basic pay.

The updated DA will be implemented from January 2026. Along with employees, pensioners will also benefit, as their Dearness Relief (DR) will be increased in the same proportion.

How DA is Calculated and Revised

Dearness Allowance is revised twice every year-once in January and again in July. The adjustment is based on changes in the Consumer Price Index for Industrial Workers (CPI-IW), which tracks inflation.

Although this time the increase is smaller compared to some earlier revisions, it reflects th...