DA Hike: There’s news of relief for central government employees and pensioners. Dearness Allowance (DA) and Dearness Relief (DR) are expected to increase by 2 percent from January 2026. Currently, employees receive 58 percent dearness allowance each month.
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DA Hike: There’s news of relief for central government employees and pensioners. Dearness Allowance (DA) and Dearness Relief (DR) are expected to increase by 2 percent from January 2026. Currently, employees receive a 58 percent dearness allowance (DA) every month. If the government increases DA by 2 percent in January 2026, the dearness allowance (DR) could rise to 60 percent.
This increase is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) data released by the Labor Bureau. In the November 2025 data released on December 31, 2025, the index increased by 0.5 points to 148.2, bringing the 12-month average DA firmly in line with the 60 percent DA.
According to the 7th Pay Commission rules, DA is calculated using the 12-month average of AICPI-IW (base year 2016 = 100). Calculated on the basis of data till November 2025, DA has reached 59.93% i.e. very close to 60%.
July 2025: 58.53%
August 2025: 58.94%
September 2025: 59.29%
October 2025: 59.58%
November 2025: 59.93%
Only the December 2025 index is left, but indications are clear that the result will not fall below 60%.
60% DA even in December under different circumstances
Index remained stable at 148.2: DA – 60.34%
Index increased to 150.2: DA – 60.53%
Index decreased to 146.2: DA – 60.15%
Since the government announces DA in whole numbers, any figure between 60.00% and 60.99% will be considered 60%. This means a 2% increase from the current 58% to 60% is almost certain.
When will the announcement be made?
Although the DA will be effective from January 1, 2026, the formal notification will come later. Based on past experiences, the government may announce the DA increase in March or April 2026. Arrears from January will also be paid.
Why is the DA increase more important this time?
This DA increase is also significant because January 1, 2026, marks the beginning of the new cycle of the 8th Central Pay Commission. Upon implementation of the new Pay Commission, the existing DA is merged into the basic DA, and the DA starts from zero again. In this situation, the 60% DA under the 7th CPC becomes an important reference point, which can impact the fitment factor and the new salary structure.
What will employees benefit from?
Employees’ monthly take-home salary will increase.
Pensioners will receive higher DR.
