Modi government's Holi gift: DA hike will Increase Salaries and Also Provide Arrears

DA Hike News: The central government may give good news to its employees before Holi. According to reports, the government may announce an increase in dearness allowance (DA). If this happens, employees may receive the increased DA from their February salary and arrears for January. Currently, central employees receive 58% DA, which is likely to be increased to 60%.

According to media reports, the DA could increase by up to 2% from January 1, 2026. If approved, the dearness relief (DR) for employees and pensioners will also increase from 58% to 60%. This increase will be implemented under the 7th Pay Commission, as the 8th Pay Commission has not yet been implemented.

Employees Win a Lottery Before Holi

It is expected that a decision on this will be taken in the Union Cabinet meeting chaired by Prime Minister Narendra Modi in early March 2026, before Holi. This will be the first DA increase after the completion of the 7th Pay Commission’s term on December 31, 2025.

However, no official announcement has been made by the government yet. The final decision will be made only after the Union Cabinet’s approval. The final DA calculation will depend on the All India Consumer Price Index (CPI-IW) data for December 2025 released by the Labour Bureau. This index remained stable at 148.2 points, the same as in November.

What is Dearness Allowance?

Dearness Allowance is a portion of the salary that is given to offset the impact of rising inflation. The Central Government revises DA twice a year—in January and July. This increase is determined based on the employee’s basic salary.

For example, if an employee’s basic salary is ₹1 lakh and they receive 58% DA, they receive ₹58,000 as dearness allowance. If the DA increases to 60%, they will receive ₹60,000. This means their total salary will increase by ₹2,000.