DA Hike 2026- Can the government announce the DA at any moment? All eyes on Holi

DA Hike 2026: Big news for central government employees. Right now Central government employees and pensioners are now eyeing the dearness allowance (DA) hike for January–June 2026. The government is expected to announce it in the first week of March, before Holi. As is the tradition every year, the January DA is typically announced in March, and the July DA is announced around Diwali in October–November. This year’s hike is considered significant because the 7th Pay Commission completed its term on December 31, 2025, and all eyes are now on the 8th Pay Commission.

What is the detail?

Currently, DA has reached 58% by December 31, 2025, which was implemented after a 3% increase in the July–December 2025 cycle. It is estimated that a 2% increase could occur in January 2026, taking the DA to 60%. If this happens, it will be one of the lowest January increases in the last 26 years, though not the lowest. January 2000 saw a mere 1% increase, while January 2007, 2018, and 2025 saw 2% increases. Even 1-2% matters to employees as it directly impacts monthly salaries, arrears, and pensions.

8th Pay Commission process ahead

Meanwhile, the 8th Pay Commission process is also progressing. The government released its Terms of Reference on November 3, 2025. The Commission’s official website is live, and a detailed questionnaire is available on the MyGov portal, with a deadline of March 16, 2026. Only online suggestions are being accepted. The survey covers 18 key questions, including fitment factor, annual increment, pension structure, and allowance revisions.

The Commission is scheduled to submit its final recommendations within 18 months. According to initial estimates, the fitment factor could be between 1.83 and 2.46, potentially resulting in a 30–34% salary increase. DA will be zeroed upon implementation of the new pay structure, as has been the practice with every new pay commission.

Approximately 5 million central employees and 6.9 million pensioners will benefit from the commission’s recommendations. Employee organizations are also drafting demands, and a drafting committee meeting is scheduled for February 25, 2026. All eyes are currently on the DA announcement in March. Even if the increase is only 2%, it will provide inflation relief and may later be merged into the basic pay under the 8th Pay Commission. Overall, 2026 could prove to be a year of change for employees—the 7th Pay Commission era will end and the 8th Pay Commission will usher in a new beginning.