There’s some good news for central government employees and pensioners. After a long wait, it’s now expected that an increase in dearness allowance (DA) could be announced this week. If this happens, millions of employees and pensioners will see a significant increase in their salaries and pensions. According to media reports, the government may increase DA by about 3 per cent this time. After this, the dearness allowance will increase from 58 per cent to 61 per cent. Earlier, in October 2025, DA was increased from 55 per cent to 58 per cent, effective July 1, 2025.
How much will the salary increase?
The direct benefit of the DA increase will be reflected in employees’ salaries. For example, if an employee’s basic salary is Rs 56,100, then at 58 per cent DA, they receive Rs 32,538. However, at 61 per cent DA, this will increase to Rs 34,221. This means an increase of approximately Rs 1,683 per month. Furthermore, arrears for the three months from January to March will also be added. As a result, an additional payment of approximately Rs 6,732 may be received with the April salary. However, this amount will vary depending on each employee’s basic salary.
Who will benefit?
This DA increase will benefit approximately 4.9 million central government employees and approximately 6.8 million pensioners. This relief is considered crucial for them amid rising inflation.
Dearness allowance is a portion of government employees’ salaries, provided to mitigate the impact of inflation. Its purpose is to maintain employees’ purchasing power so they can manage their expenses despite rising prices.
Eye on 8th Pay Commission too
The government is also continuing the process for the 8th Pay Commission. Although it was originally scheduled for implementation on January 1, 2026, it is now expected to be implemented by mid-2027. For now, the biggest relief for employees could be an increase in DA.
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