What is the status of the dearness allowance (DA) hike for central government employees? As of March 25, 2026, the Union Cabinet has not announced any increase in the DA, which currently stands at 58% of basic pay.

The DA hike is typically reviewed and updated twice a year, around Diwali in October and Holi in March. This year, the hike is expected to be announced for the January-June cycle, benefiting over 1.2 crore central government employees and retirees.

The calculation of the DA hike is based on the Consumer Price Index (CPI). A potential 2% increase would raise the DA from 58% to 60% of basic pay. If approved, this would add ₹360 to the minimum salary of ₹18,000, bringing the total minimum salary under the 7th Pay Commission to ₹28,800.

The last DA increase was approved in October 2025, which was a 3% hike. Union Minister Ashwani Vaishnav stated, “The Union Cabinet has not announced any increase in dearness allowance for central government employees so far.” This leaves many employees awaiting clarity on the upcoming adjustments.

Details remain unconfirmed regarding the exact date of the DA hike announcement and the specific percentage increase. The anticipation continues as employees and pensioners look forward to the Union Cabinet’s decision.

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