DA Hike Update - DA to rise by 2%! Find out how much your salary will increase

8th Pay Commission: The month of March could bring much joy for central employees, as the central government is considering making some major announcements. It’s expected that a large number of central employees and pensioners will benefit. The central government may soon announce a DA hike, which everyone is eagerly awaiting.

If the DA is increased in March, its rates will be effective from January 1st. More than 10 million employees and pensioners will benefit. According to the latest data from the AICPI-IW, a DA increase of up to 2% is possible.

The central government may announce the DA hike after Holi, which will result in a significant salary increase. Meanwhile, work on the 8th Pay Commission’s review report is also gaining momentum. Nothing has been officially announced regarding the DA hike.

How much will the dearness allowance be?

There is growing anticipation about how much the DA will increase in the first half of 2026. A 2% DA increase based on inflation is expected by December 2025. Currently, the DA is 58%. If the government increases the DA by 2%, it will reach 60%.

Some reports claim up to 6%, but the AICPI’s 12-month data indicates a total increase of only 2%, which is accurate. Currently, central employees are receiving only 58% DA. After the DA increase, their salaries will skyrocket. You can learn about the important information below in detail.

Learn about the impact on your pocket.

The 2% increase in DA for central employees will lead to a significant increase in their salaries. You can learn how the 2% increase will affect their salaries. If the basic salary of central employees is Rs 30,000, then the 2% increase will be Rs 600. This would result in an annual increase of up to ₹7,200.

If a central government employee’s basic salary is ₹40,000, then 2% DA wouldincrease tof ₹800. This means the salary is expected to increase by ₹9,600 annually. This increase would be a booster.

There will be an increase in the fitment factor.

For information, it’s worth noting that the fitment factor will change upon implementation of the 8th Pay Commission. It is expected that it could be increased to 2.86 or 3.0, which would increase the minimum salary from ₹18,000 to between ₹30,000 and ₹50,000.

DA may also be merged into the basic salary. There is talk that DA will be merged into the basic salary as soon as it reaches 50%, but the Finance Ministry has remained silent on this matter for now. The Central Government may soon issue a new order on this, which will end the wait of the employees.