The central government's recent decision to increase the dearness allowance from 60% to 63% will affect salaries significantly. This hike, effective from July 1, 2026, results in notable changes in retirement gratuity. The latest 3% dearness allowance (DA) hike will not just increase the monthly salary of central government employees. It can also push up the gratuity amount for an employee who is just about to retire.