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DA Hike: The Ministry of Finance has issued an order regarding an increase in the Dearness Allowance. Under the 7th Pay Commission, employees will now receive a Dearness Allowance (DA) of 60%. Additionally, the salaries of employees covered under previous Pay Commissions will also see an increase.

DA Hike: The year 2026 has begun with fantastic news for central government employees and pensioners. On April 22, 2026, the Department of Expenditure—operating under the Ministry of Finance—issued an official order giving its final approval to an increase in the Dearness Allowance (DA). This decision is deemed effective from January 1, 2026, which directly implies that employees will also receive arrears (back pay) for the preceding months.

How much will salaries increase for those under the 7th Pay Commission?

If you are currently drawing your salary under the 7th Pay Commission (7th CPC), your Dearness Allowance has now been raised from 58% to 60%. Here, "Basic Pay" refers to the fixed salary you receive as per your specific Pay Matrix level; it excludes any special pay or additional allowances. The government has clarified that during the calculation of the allowance, if the fractional amount is 50 paise or higher, it will be rounded off to the next whole rupee. A significant benefit is that this increased amount will be added to your remuneration as a distinct component, separate from your Basic Salary.

What are the benefits for those under the older Pay Commissions?

The government has also taken into consideration those employees who continue to draw their salaries in accordance with the older Pay Commissions:

6th CPC: For this group, the Dearness Allowance has been increased from 257% to 262%.
5th CPC: For these employees, the rate has risen from 474% to 483%.
This rule will also be applicable to civilian employees within the Defense Services. Meanwhile, the respective ministries for the Railways and the Armed Forces are expected to issue their own separate orders shortly.

Who stands to benefit from this decision? This government announcement will have a direct impact on the finances of approximately 50.46 lakh central government employees and 68.27 lakh pensioners across the country. The government has directed all ministries and departments to disseminate this information to the organizations under their jurisdiction as expeditiously as possible. Approval for this measure has also been granted for the Indian Audit and Accounts Department (IA&AD), following due consultation with the Comptroller and Auditor General (CAG).

Why is the DA (Dearness Allowance) increased?

Dearness Allowance (DA) is a component of a government employee's salary provided to mitigate the impact of rising inflation. Since the prices of goods and services tend to rise over time, the government periodically revises this allowance to preserve the employees' purchasing power. Simply put, you will now receive increased financial assistance from the government to help you cope with rising inflation. Following the issuance of this notification, the respective departments have now initiated the payment process.