DA Hike Update: Employees and Pensioners May Get Major Relief

DA Hike: Central employees and pensioners across the country have been awaiting the 8th Pay Commission for a long time. Although the Commission’s final report and implementation may take some time, it remains a topic of constant discussion among employees. Many questions are being raised regarding pay revision, the fitment factor, and dearness allowance. In particular, considering the current status of dearness allowance (DA), it is being assessed what impact this will have on the upcoming pay hike.

The Mathematics of DA and Previous Pay Commissions

With the implementation of each new Pay Commission, the DA of employees and DR of pensioners is reduced to zero, and the calculation begins at the new rates.

During the Fifth Pay Commission, which was effective from 1996 to 2006, dearness allowance reached 74 percent by the end of the year.

By the end of the Sixth Pay Commission, which was effective from 2006 to 2016, DA reached 125 percent of the basic pay.

The current DA in the Seventh Pay Commission is approximately 58 percent, and it is expected to reach 60 percent after the expected increase in March.

Learn how much DA was increased in the Seventh Pay Commission

Experts believe that the rate of increase in dearness allowance during the Seventh Pay Commission has been relatively slow compared to previous commissions. This could impact future salary increases. Since the current DA level plays a key role in determining the fitment factor in the new Pay Commission, this issue has become important for employees.

Learn how much DA may increase

Following the AICPI-IW data for December 2025, it is estimated that DA and DR may increase by 2 percent each. If this happens, the salaries of central employees and the relief amount for pensioners will increase. It is expected that the government may announce this increase around Holi, providing financial relief to employees before the festival.