DA Hike: Central government employees have been waiting for a long time for a dearness allowance increase. Looking at past years, the government has mostly increased dearness allowance before Holi. It is expected that the government will also increase the DA before Holi in 2026.
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DA Hike: Central employees have been waiting for a long time for a dearness allowance increase. Looking at past records, the government has mostly increased its dearness allowance before Holi. In 2026, the government is also expected to increase the DA before Holi. Now, the question is how much can the government increase its dearness allowance? A 2% increase in DA is almost certain. The Labor Bureau released the AICPI-IW data for December 2025 at 148.2. Based on this, the DA could increase from 58% to 60%. Millions of employees are waiting for the announcement of the DA hike. This year, Holi is on March 3, 2026. So, the question is, will the government announce the DA before Holi?
When is the DA announced?
The government increases the DA twice a year. One effective in January and the other in July. However, the announcement is usually made later. Sometimes, it happens before major festivals like Holi or Diwali. For example, in 2025, Holi fell on March 14th, but the DA hike was announced on March 28th. In October 2025, the DA was raised before Diwali. Employee organizations believe the government may make the announcement before Holi this time. However, the final decision will be determined only by a government order.
Why is DA necessary?
DA is paid on employees’ basic salary. The Pay Commission determines the basic salary. The 7th Pay Commission’s term ended on December 31, 2025. It will take time for the 8th Pay Commission’s recommendations to be implemented. Until then, employees’ basic salary will remain unchanged, but DA will increase every six months.
What will be the impact on salary?
Suppose an employee’s basic salary is Rs 18,000.
At 58% DA
58% of 18,000 = Rs 10,440
Total salary (basic + DA) = Rs 28,440
If DA increases to 60%?
60% of 18,000 = Rs 10,800
Total salary = Rs 28,800
That means there will be an increase of Rs 360 every month. Apart from this, house rent allowance and annual increment are given separately.
How is DA determined?
DA is calculated based on the 12-month average of the AICPI-IW. The 12-month average until December 2025 was 145.54. This is multiplied by 2.88 to compare it to the old base year. According to the formula, DA comes to 60.33%. The government will round this figure to 60%. This means a 2% increase is almost certain. All eyes are now on the government’s official announcement. If a decision is made before Holi, it will be a major relief for employees ahead of the festival.
