Central Government Increases DA by 2 Percent for Employees and Pensioners

The Central Government has shared some important news for its workers. There is a new DA hike for central government employees and pensioners. This change is meant to help with the rising cost of living.

This update is effective from January 1, 2026. Both current workers and people who have retired will see a change in their monthly money. This is a helpful step for many families across the country.

New Rates After the 2 Percent DA Increase

The government has increased the Dearness Allowance (DA) and Dearness Relief (DR) by 2 percent. Before this news, the rate was 58 percent of the basic salary. Now, the rate has moved up to 60 percent.

This means employees will get a little more money every month. The increase is calculated based on the basic pay they receive. You can see the change in the table below.

How Much Tax on Dearness Allowance 2026

With more money coming in, many people are thinking about taxes. Workers want to know how much tax on dearness allowance 2026 they will have to pay. When the DA increases, the total salary also goes up.

A higher salary can sometimes mean a change in income tax. Both employees and pensioners need to look at their new total income. This will help them understand their tax payments for the year.

Conclusion

The recent DA hike for central government employees is good news for many people. It increases the allowance from 58 percent to 60 percent. This change helps workers and pensioners manage their daily expenses better. It is important to check how this new income affects your personal tax planning.

FAQs

When does the new DA hike start?

The new hike is effective from January 1, 2026.

What is the new DA percentage?

The DA has increased from 58 percent to 60 percent of the basic salary.

Who will benefit from this change?

This change is for Central Government employees and pensioners.