Dearness Allowance (DA) is a cost of living adjustment paid to central government employees and pensioners to help offset inflation. It is calculated as a percentage of basic pay and revised periodically based on the Consumer Price Index (CPI).
In February 2026, the government is expected to announce a 2% increase in DA, providing financial relief to employees and pensioners amid rising living costs.
Why DA Hike Is Important
The DA hike directly impacts monthly take-home salary and pension. Even a small increase can help employees manage expenses such as groceries, utility bills, and other essential items.
For pensioners, the DA revision is crucial as it enhances their fixed monthly income, offering protection against inflation.
Expected DA Revision February 2026
Reports suggest a 2% increase in DA, which will be applicable for central government employees and pensioners. This is part of the routine biannual DA revision based on CPI data collected over six months.
The exact effective date and implementation will be officially notified by the Ministry of Finance.
Calculation of DA After Hike
| Component | Current Rate | Expected February 2026 Rate |
|---|---|---|
| Dearness Allowance (DA) | 42% of basic pay | 44% of basic pay |
| Eligible Employees | Central Government staff | Same |
| Pensioners | DA linked to pension | Revised proportionally with 2% increase |
| Implementation Date | Previous DA effective | February 2026 (to be notified) |
This table provides an easy reference for employees and pensioners to estimate their revised DA.
Impact on Salaries and Pensions
The 2% DA hike will slightly increase monthly salaries and pensions. For employees with higher basic pay, the absolute increase will be more noticeable.
For pensioners, the increase ensures that fixed income remains relatively stable despite rising prices of essential goods and services.
Conclusion
The February 2026 DA hike of 2% is expected to bring modest financial relief to central government employees and pensioners. While the official notification is awaited, eligible beneficiaries should stay informed and verify updates from authorised government sources to calculate the revised salary and pension accurately.
Disclaimer: This article is for informational purposes only. DA revision rates, effective dates, and applicability are subject to official notifications from the Government of India. Employees and pensioners should rely on authorised announcements for confirmed figures.