The central government has given a big good news for central employees and pensioners in April 2026. The government has completed preparations to increase Dearness Allowance (DA) by 2%.
With its implementation, there will be a direct increase in the pockets of more than one crore employees and they will also get the arrears of the previous months.
DA may increase by 60%
Based on the Consumer Price Index (AICP-IW) data from January to December 2025, it is believed that DA will now increase from 58% to 60%. When calculated according to the existing formula, DA comes to 60.33%, which has been decided to be rounded to 60%. This increase will be effective from January 1, 2026, due to which the employees will also get the arrears of the previous months.
8th pay commission formation
Although the 8th Pay Commission has been constituted in November 2025, 18 months have been kept for its final recommendations. During this period, DA calculation will continue as per the old formula. This means that the outstanding arrears from January 2026 till now will be added together to the employees’ accounts.
There will be benefit in basic salary
In future, after the implementation of the 8th Pay Commission recommendations, the old DA will be merged into the basic salary. This will see a historic jump in salaries and there will be a significant increase in the total income of the employees. At present, this announcement to be made in the second week of April will prove to be a directly beneficial deal for the employees.
What is important for employees?
DA increase will lead to immediate increase in salary.
Pensioners will also get similar benefits.
The arrears applicable from January will be directly credited to the account.
During the transition period, payments will continue based on the old formula.