DA Hike 2026: The Union Cabinet has cleared a 2% hike in Dearness Allowance (DA) for government employees and pensioners, according to sources. DA is linked to inflation and is revised twice a year which is usually around January and July. The DA for the central government employees was last revised in October, and then it was increased from 55 per cent to 58 per cent. Dearness Allowance is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW) which is released every month by the Labour Bureau under the Labour Ministry. However, this time the announcement was delayed.
Dearness Allowance (DA) is a cost-of-living benefit given to government employees, calculated as a percentage of their basic salary to help deal with inflation. It ensures that their income keeps up with rising salary prices.
The government reviews DA for employees and Dearness Relief (DR) for pensioners twice a year, usually in January and July. These regular updates are meant to reduce the impact of inflation and help maintain their purchasing power and standard of living.
In DA memorandum, the National Council-Joint Consultative Machinery (NC-JCM) proposed increasing the fitment factor to 3.83, which could push the minimum basic pay from Rs 18,000 to around Rs 69,000.
This demand comes as employee groups are seeking major changes in the pay structure under the proposed 8th Pay Commission.
The body has also suggested widening the definition of “family” for salary-related benefits to include dependent parents. In addition, it has recommended reducing the gap in salaries along with giving higher yealy increments and allowances that increase with inflation.
The Cabinet approved setting up a Sovereign Maritime Fund with a corpus of Rs 13,000 crore to offer affordable and stable insurance for Indian-flagged ships and vessels operating in and out of India.
It also cleared the extension of the Pradhan Mantri Gram Sadak Yojna (PMGSY) till 2027, along with an additional allocation of Rs 3,000 crore.
Manisha Chauhan is a passionate journalist with 3 years of experience in the media industry, covering everything from trending entertainment buzz and celebrity spotlights to thought-provoking book reviews and practical health tips. Known for blending fresh perspectives with reader-friendly writing, she creates content that informs, entertains, and inspires. When she’s not chasing the next viral story, you’ll find her diving into a good book or exploring new wellness trends.
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