In a significant relief for lakhs of employees, the Government of India has announced an increase in Dearness Allowance (DA) for Central Government employees. As per an official memorandum issued by the Ministry of Finance, Department of Expenditure, the DA has been enhanced from 58% to 60% of Basic Pay, effective from January 1, 2026.

The decision has been approved by the President of India and aims to help employees cope with rising inflation. The revised DA will be calculated based on the basic pay as per the 7th Central Pay Commission recommendations.

The memorandum also clarified that Dearness Allowance will remain a separate component of salary and will not be treated as basic pay. Additionally, payments involving fractions of 50 paise and above will be rounded off to the next rupee.

The order will also apply to civilian employees paid from Defence Services Estimates. However, separate instructions will be issued for Armed Forces personnel and Railway employees by their respective ministries.

This hike is expected to provide financial relief and boost the morale of government employees across the country.