Dearness Allowance is of two types, one which is revised quarterly based on CPI, and the other revised semi-annually. Both these aim to mitigate inflation effects for households of central government employees.

The 8th Pay Commission review highlights progress in consultations, stakeholder engagement, and the policy focus on salaries, pensions, and reforms shaping the future of government employees across the country.
The Finance Ministry announced a 2% increase in Dearness Allowance for central government employees and pensioners, effective January 1, 2026, raising it from 58% to 60%. Here's all you need to know about the pay component…