DA Hike Update: 2% Increase Likely for Central Employees Before Holi

DA Hike: Employees and pensioners of the central government are looking forward to the dearness allowance (DA) increase for January-June 2026. It’s likely to be revealed in the first week of March, just before Holi, as is the usual practice. Typically, the central government announces the January DA revision in March (often ahead of Holi) and the July DA revision in October or November, around Diwali. However, this year’s announcement is particularly important.

This will mark the first DA hike following the conclusion of the 7th Pay Commission’s term on December 31, 2025, and comes at a time when employees are keenly watching the developments regarding the 8th Pay Commission.

Why is this DA hike important?

As of December 31, 2025 (the end of the 7th Pay Commission’s term), the DA stood at 58% after a 3% rise for the July-December 2025 period. If predictions hold true, the upcoming January 2026 revision might see a 2% increase, bringing the DA up to 60%. However, if the increase is indeed 2%, it would be one of the smallest January increases since 2000, akin to the increases seen in January 2025, 2018, and 2007. But it wouldn’t be the lowest ever (January 2000 had a mere 1% rise).

A glance at the smallest DA hikes in January since 2000:
– January 2000 – 1% increase
– January 2007 – 2% increase
– January 2018 – 2% increase
– January 2025 – 2% increase

This indicates that the 2% hike in January 2026 will be among the lowest in the past 26 years, but even a small percentage is significant for employees, as DA directly affects their monthly salary, arrears, and pension payments.

What will happen to DA when the 8th Pay Commission is implemented?

The upcoming DA hike is also significant because it coincides with the transition to the 8th Pay Commission. The government notified the commission’s Terms of Reference (ToR) on November 3, 2025, after announcing it in January 2025.

Current Status (as of February 2026)

– The official website (8cpc.gov.in) is live.
– A detailed questionnaire is available on the MyGov portal.
– Submission deadline: March 16, 2026.
– Only online submissions will be accepted (no email or paper copies).

The survey covered 18 key questions – fitment factor; annual increment; pension structure; and allowance revision. The commission has 18 months from November 3, 2025, to submit its final recommendations. It is headed by former Supreme Court judge Ranjana Prakash Desai.

Are you hoping for a salary bump with the 8th Pay Commission?

While the recommendations aren’t set in stone yet, early estimates indicate a fitment factor ranging from 1.83 to 2.46; salary hikes of 30–34% are expected to kick in starting January 1, 2026. The interesting part is that when the new pay structure rolls out, the DA will reset to zero, just like it has in previous pay commission implementations.

This has sparked some chatter among employees about whether the DA increase will keep going during the transition. The government has made it clear that there’s no plan to stop the DA increase until the new structure is in place. The National Council (JCM) is working on a detailed memorandum, and a meeting for the drafting committee is set for February 25, 2026, to nail down the employees’ demands.

The consultation phase is super important, as feedback from ministries and departments, state governments and UTs, employee unions, pensioners, researchers, and academics will shape the final recommendations. The Commission’s final report is anticipated to benefit around 5 million central government employees and 6.9 million pensioners.