Before Holi, central employees are busy! Will dearness allowance reach 60%? Big update on 8th Pay Commission

There is full hope of good news for central employees and pensioners before Holi. Based on media reports and latest data of AICPI-IW (Industrial Workers Consumer Price Index), the government may announce an increase in Dearness Allowance (DA) to be implemented from January 2026. If everything goes well then this time DA can reach 60%. Let us understand the whole matter in desi style.

You can get the gift of DA increase on Holi

The month of March can bring a bundle of happiness for the central employees. Like every year, this time too the government can announce DA increase around Holi with effect from January 2026. Currently the dearness allowance is 58%, which was increased by 3% in October 2025. Now, based on the new data, another increase is considered certain.

Will dearness allowance really be 60%?

Looking at the 12-month average of AICPI (145.54), the possibility of a 2% increase this time seems stronger. If this happens then DA will increase from 58% to 60%. Some reports are talking about a 6% increase, but according to the data, an increase of 2% is considered more strong and certain. That means it is almost certain that the figure of 60% will be touched.

How much benefit will come to your pocket?

Dearness allowance is directly added to your basic salary. Suppose the basic salary of an employee is Rs 30,000, then a 2% increase means about Rs 600 more every month. This amount becomes Rs 7,200 in a year. Those who have higher salaries will get more benefits. That means, along with sweets, salary is also sweet on Holi.

8th Pay Commission: Big bang in salary?

The tenure of the 7th Pay Commission has ended on 31 December 2025. Now everyone’s eyes are on the 8th Pay Commission. There is discussion that the fitment factor could be as high as 2.86 or 3.0. If this happens, the minimum salary may increase from Rs 18,000 to Rs 30,000 to Rs 50,000. Meaning a huge jump in salaries.

Will 50% DA be merged into basic?

Earlier there was a discussion that as soon as 50% DA is reached, it will be added to the basic salary, but the Finance Ministry has not given any clear indication on this at present. It is believed that as soon as the 8th Pay Commission is implemented, DA will be reduced to zero and the new basic salary will be decided. That means the entire salary structure will be set afresh.

Overall, the beginning of 2026 looks full of good news for central employees. Now just waiting for the official announcement from the government.

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