SRINAGAR 18 May : In a major financial relief ahead of the mid-year, the Government of Jammu and Kashmir has announced a 2 percent hike in Dearness Allowance (DA) for regular employees, pensioners and family pensioners.
According to two separate orders issued by the Finance Department, the DA rate has been enhanced from the existing 58 percent to 60 percent of Basic Pay/Basic Pension.
The orders state that the revision will take effect retrospectively from January 1, 2026, following the Council of Ministers’ decision No. 065/06/2026 dated April 30, 2026.
With the latest revision, DA has increased by 2 percent, from 58 percent to 60 percent. The revised DA will form part of the monthly salary and pension from May 2026 onwards.
The orders also outline separate mechanisms for the payment of arrears accumulated from January 2026 to April 2026.
For GPF subscribers under the traditional pension scheme, the additional DA arrears for the four-month period will be credited to their General Provident Fund (GPF) accounts in monthly installments.
For employees covered under the National Pension System (NPS), the arrears for the same period will be paid entirely in cash. The orders further clarify that the employer’s 14 percent share on DA arrears will be drawn, while the employee’s 10 percent contribution will be deducted at source and credited to their respective PRAN accounts.
For pensioners and family pensioners drawing benefits under the 7th Pay Commission recommendations, the arrears from January to April 2026 will be paid in cash in May 2026.
The orders also state that fractions of a rupee in DA calculations for pensioners will be rounded off to the next higher rupee.
Defining “Basic Pay,” the Finance Department clarified that it refers strictly to the pay drawn in the prescribed level of the Pay Matrix under the 7th Pay Commission recommendations and does not include special pay or any other allowances.
