Union Cabinet Approves 2% Hike In Dearness Allowance For Central Government Employees
New Delhi: The Union Cabinet on Saturday, approved 2% hike in Dearness Allowance (DA) for central government employees. The move comes after 8th Pay Commission recommendation subsequent increased pressure for the hike and other broader demands.
The National Council–Joint Consultative Machinery (NC-JCM) has pitched for a significantly higher fitment factor of 3.83 in a memorandum submitted to the government.
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The cabinet approved the hike, taking the total l to 60% of basic pay. The revised rates will be effective from January 1, 2026, benefiting around 50.5 lakh central government employees and 68.3 lakh pensioners, offering a boost to incomes.
The pay commission recommended the hike considering the persistent inflation concerns. The financial implication of the increase will be approximately Rs 6,791 crore per year, adding to the government’s expenditure burden, as per the official estimates, The Economic Times reported.
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It would also raise the minimum basic pay from Rs 18,000 to around Rs 69,000, suggesting a substantial revision in the overall pay structure. The move comes amid rising complaint from pensioners and employees over the delay in bringing the hike.
