• Increase in Inflation Allowance by Central Govt

• How much basic salary will you get?

• Good news for central employees

A major decision was taken for central government employees and pensioners in the Cabinet meeting chaired by Prime Minister Narendra Modi. The government has approved a 2% increase in Dearness Allowance (DA) and Dearness Relief (DR). This landmark decision will increase the rate of DA from 58% to 60%. This change will come into effect from 1 January 2026, which will significantly improve the financial situation of lakhs of families. Let us know from this article how it will be beneficial and beneficial. Let us understand in detail how much the basic salary of the government employees will be.

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Directly benefiting over 11.8 million people

This government decision will directly benefit approximately 50.46 lakh central government employees and 68.27 lakh pensioners. This increase has been made to maintain the purchasing power of the employees in this period of inflation. As the hike is effective from January, employees are likely to get their previous months’ dues as well. Many people will benefit from getting this dues and besides this will increase the salary.

How much will the salary increase?

This 2% increase in DA will significantly increase the monthly salary of the employees. For example, if an employee’s basic salary is ₹30,000, he would get dearness allowance of ₹17,400 at the old rate of 58%. Now, at the new rate of 60%, this amount will increase to ₹18,000, meaning they will get an extra ₹600 per month.

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How is the rate of dearness allowance determined?

Dearness Allowance (DA) is determined based on the inflation rate of the previous year. The government uses a specific formula that takes into account market prices (CPI-IW):

Dearness Allowance (%) = [(मागील १२ महिन्यांची सरासरी AICPI – ११५.७६) / ११५.७६] x 100

The government updates this rate every year in January and July to take into account changes in prices, thereby reducing the impact of inflation on employees. The recent increase has also been made in view of the new statistics of industrial workers