DA Hike Update – The first week of 2026 is coming to an end. People from all walks of life, including central government employees, have high hopes for the new year. Amidst the winter season, discussions have begun regarding a potential increase in the Dearness Allowance (DA) for central government employees. A 2% increase in DA is considered likely for the first half of 2026.
If the DA is increased by 2%, it will reach 60%. Currently, central government employees are receiving a 58% DA. A DA increase is expected around Holi. However, no official announcement has been made regarding the DA hike yet.
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How will the rate be determined?
According to a report published in a media outlet, the projected DA rates are not based on mere estimates. The news of a 2% increase in DA and DR (Dearness Relief) is based on solid government data from the Labour Bureau. The AICPI-IW, used for DA calculation, increased by 0.5 points to 148.2 in November 2025.
According to the 7th Pay Commission, the consumer price index for the past 12 months is also considered for determining the DA. This index is based on the cost of everyday necessities such as food, transportation, housing, and healthcare services. Some experts believe that a 2% increase in DA is possible.
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When is the announcement expected?
The central government may increase the Dearness Allowance (DA) after Holi or by the end of February. If the DA is increased in whole numbers, it will reach 60%. This would mean a 2% increase in DA. The increased DA rates will be considered effective from January 1, 2026. Previously, the DA was increased by 3%. The increased DA rates were implemented on July 1, 2025.
When will the 8th Pay Commission be implemented?
Central government employees and pensioners are eagerly awaiting the implementation of the 8th Pay Commission. The government has already constituted the new pay commission. Now everyone is waiting for its implementation. Preparing the review report will likely take 18 months. Only after that will the 8th Pay Commission be implemented. Based on this timeline, it is likely to be implemented sometime in 2027.