New Delhi: The fortunes of central government employees and pensioners are set to brighten, as the Modi government may soon open its coffers. The Dearness Allowance (DA) for central employees could see an increase of up to 2 per cent. This would result in a substantial hike in salaries. Typically, the government announces an annual increase in DA around the time of the Holi festival.
This move will benefit hundreds of thousands of employees. Separately, discussions regarding the implementation of the recommendations of the 8th Pay Commission are also gaining momentum. Officially, no specific date has yet been announced regarding the DA hike; however, media reports are making such claims.
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What will the DA percentage be?
The Dearness Allowance for central government employees could be increased by up to a cent. This would raise the total DA per cent. Currently, central employees are receiving a DA percentage. If the DA is increased now, the revised rates will be applicable retroactively from January 1, 2026.
DA is typically hiked twice a year, with the increases coming into effect from January 1 and July 1. Previously, the Modi government had increased the Dearness AlloAllowance percentageinging the total per cent8 percent.
Find out when the DA was. last hiked
According to a report by the Ministry of Finance, in the previous year (2025), the government’s proposal to hike the DA was tabled on March 28, 2025. This was followed by an official announcement on April 2. Similarly, in 2024, the government officially announced the hike in Dearness Allowance on April 3.
During the COVID-19 pandemic, the government had frozen the Dearness Allowance at 17% for the period between October 14, 2019, and July 20, 2021; an order to this effect was issued on April 23, 2020.
When might the 8th Pay Commission be implemented?
It is worth noting that all central government employees and pensioners are eagerly awaiting the implementation of the 8th Pay Commission. To this end, the government has constituted a committee of the commission. The committee is expected to submit its recommendations to the government by June 2027. Subsequently, these recommendations may be implemented.
