DA hiked to 60% for employees, pensioners

Srinagar, May 18: The Jammu and Kashmir Government has approved a hike in Dearness Allowance (DA) for employees, pensioners and family pensioners under the 7th Pay Commission, increasing the rate from 58 percent to 60 percent of basic pension and family pension with effect from January 1, 2026.

According to a government order issued by the Finance Department, the revised DA will be applicable to employees working in regular pay levels under the 7th Pay Commission recommendations notified through SRO-193 of 2018. The order further states that arrears from January 2026 to April 2026 for employees covered under the General Provident Fund (GPF) scheme will be credited into their GPF accounts as monthly installments.

However, employees covered under the National Pension System (NPS) will receive the arrears in cash. The government also clarified that in the case of NPS employees, the employer’s contribution of 14 percent on DA arrears will be drawn, while 10 percent employee share will be deducted at source and credited to the respective PRAN accounts. The order added that DA involving fractions of 50 paisa and above will be rounded off to the next rupee, while amounts below 50 paisa will be ignored.

Meanwhile, the revised DA will be applicable to all government pensioners and family pensioners drawing pension under the 7th Pay Commission recommendations.

The order further states that arrears for the period from January 2026 to April 2026 will be released in cash during May 2026 and the revised DA component will thereafter become part of the regular monthly pension/family pension.

The government has also clarified that any fraction of rupee arising in DA calculation shall be rounded off to the next higher rupee.

The order added that all existing provisions governing the payment of Dearness Allowance, including rules related to re-employment and cases where more than one pension is drawn, will continue to remain in force unless they conflict with the fresh directive.