Union Cabinet Approves 2% Rise in Allowance

The Union Cabinet of India, led by Narendra Modi, has approved a 2% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. The decision was taken on April 18, 2026.

This increase will be effective from January 1, 2026. After the hike, the total DA and DR will rise to 60% of basic salary or pension.

The main aim of this increase is to help employees and pensioners manage rising prices and inflation. The government reviews economic conditions from time to time and adjusts these allowances to support people.

Overall, the move is expected to provide some financial relief to Central Government workers and retired employees facing higher living costs.