1.2 Crore Govt Employees Await 3% DA Hike
The proposed increase is expected to take the dearness allowance rate to 63% of basic pay, benefiting approximately 1.2 crore central government employees and pensioners
Central government employees and pensioners are awaiting the announcement of a dearness allowance (DA) hike, with the current rate at 60% of basic pay. The proposed increase is expected to be 3 percentage points, taking the rate to 63%.
The DA hike is expected to benefit approximately 1.2 crore central government employees and pensioners. The last DA revision was approved by the Union Cabinet on April 18, 2026, increasing the rate from 58% to 60% of basic pay.
In a related development, the Kerala government announced a 2% hike in dearness allowance and dearness relief for state government employees and pensioners, effective from January 1, 2026. The Delhi government also announced a pay revision for public health workers, including a minimum monthly salary of ₹18,000 and dearness allowance.
The Bharat Pensioners Samaj (BPS) has urged the government to expedite the decision on the pending dearness relief (DR) instalment for central government pensioners. The BPS claims to represent around one million central government pensioners. The DR hike is expected to be effective from July 1, 2026, and eligible pensioners are expected to receive arrears for the period between the effective date and the date of announcement.
## What is dearness relief and how is it different from DA? Dearness relief and dearness allowance are both intended to mitigate the impact of rising prices on the fixed incomes of pensioners and employees. However, dearness relief is specifically for pensioners, while dearness allowance is for employees. The BPS has emphasized that dearness relief is not a bonus or a discretionary favour, but an essential adjustment intended to mitigate the impact of rising prices on the fixed incomes of pensioners.
## Why it matters The timely release of enhanced dearness relief is particularly important for pensioners, especially during the festive season when household and family expenses tend to increase. The BPS has requested the government to expedite the decision on the pending DR instalment, along with arrears, to pensioners and family pensioners. The government's decision on the DA hike and DR instalment will have a significant impact on the financial security and peace of mind of central government employees and pensioners.
