DA hike: The time has come for government employees and retired pensioners working under the Central Government to get a hike in their salary and pension as a 2% increase in DA and DR is almost certain.
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DA Hike: Good news for central government employees and pensioners. A 2% increase in dearness allowance (DA) and dearness relief (DR) is almost certain from January 2026. This is expected to provide relief from rising inflation. This means that the time has come for government employees and retired pensioners working under the central government to receive a salary and pension increase. Currently, employees receive a dearness allowance at the rate of 58%, and with the upcoming 2% increase, it will reach 60%.
On what basis is DA determined?
According to a Moneycontrol report, the news of a 2% increase in DA and DR is not mere speculation; rather, it is based on solid government data from the Labor Bureau. The All India Consumer Price Index (AICPI-IW), used for DA calculations, increased by 0.5 points to 148.2 in November 2025.
According to the rules of the 7th Pay Commission, to decide the DA, the Consumer Price Index (CPI-IW) of the last 12 months is considered, which is based on the expenditure on daily food items, transport, accommodation and health services.
What do experts say?
Looking at the data from July to November 2025, the graph shows a steady upward trend. Based on the November data, dearness allowance (DA) appears to have reached 59.93 percent, which clearly shows that dearness allowance (DA) is very close to 60 percent and there is no possibility of it falling below it.
All eyes are now on the December 2025 index, which is yet to be released. But according to experts, the picture is unlikely to change. The math is simple: even if the index remains stable in December, the average DA will be 60.34 percent. Even if the index declines slightly, it will remain at 60 percent.
When will the announcement be made?
The government’s policy has always been to announce dearness allowance in whole numbers, not decimals. Therefore, any figure between 60.00 percent and 60.99 percent will ultimately be considered 60 percent. This means that the current dearness allowance is almost certain to increase by 2 percent from 58 percent to 60 percent.
Although these increased rates will be effective from January 1, 2026, due to government procedures, the official announcement and notification usually comes in March or April. Employees will be given the difference between January and the announcement as arrears. This increase is also significant because the new cycle of the 8th Pay Commission is expected to begin on January 1, 2026.
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