DA Update – DA Hike for Central Employees Soon! Salary to Increase by This Much

New Delhi: Holi is celebrated in the first week of March, and preparations have begun. Meanwhile, state governments are also opening their coffers for their employees and the general public. Central employees may see a brighter future, though not until Holi. The Modi government at the centre may increase the DA of central employees.

This time, the DA of central employees may be increased by up to 2%, which could benefit employees on a large scale. This is also expected to result in a significant salary increase.

This announcement could be made by March 10th, which could prove to be good news. However, no official announcement has been made. Media reports are speculating.

By how much will the DA increase?

The coffers are about to open for central employees, which will prove to be a significant gift. DA may be increased by 2% for the first half of 2026. After this, it will increase to 60%. Currently, central government employees receive a total DA benefit of 60%.

This could result in a significant increase in the salaries of central government employees. Last time, the government increased the DA by a total of 3%, bringing it to 58%. Now, there are talks of increasing the DA by 2%.

How Much Could Salary Increase?

If a central government employee’s basic salary is Rs. 40,000 per month, then at the rate of 2% DA, this would increase by Rs. 800 per month. This would translate into an increase of approximately Rs. 9,600 per year in basic salary. Furthermore, if an employee’s basic salary is Rs. 30,000, this could increase by Rs. 600 per month. This would translate into an annual increase of Rs. 7,200.

When will the rates be implemented?

The central government may increase DA by up to 2%, with the rates effective from January 1, 2026. This means that the DA arrears for January and February could be received along with the March salary. The government has generally increased DA twice each year.

The rates are effective from January 1 to July 1. All eyes are now on the 8th Pay Commission. The question is when the government will implement this Pay Commission.  It is believed that the government may implement the 8th Pay Commission by May 2027. A committee has already been formed, and its review work is underway. The salary structure for the 8th Pay Commission will also be based on the fitment factor, which will prove to be a boon for employees. More than 1 crore employees and pensioners are sure to get their benefits.