New Delhi: There is a possibility of getting good news for central employees and pensioners in the beginning of the year 2026. Between the formation of the 8th Pay Commission, an increase of 3% to 5% can be seen in Dearness Allowance (DA). This information has come out in the report of All India NPS Employees Federation.
Why can DA increase?
The Ministry of Labor and Employment had released the Consumer Price Index (AICPI-IW) for November 2025, which reached 148.2. According to the All India NPS Employees Federation, if the figure for December 2025 falls to 147, then a 3% increase in DA will be considered certain. At the same time, if the December figure remains around 148.2 like November, then the employees can get an increase of up to 5%.
Impact on take-home salary
At present central employees get dearness allowance at the rate of 58%. According to estimates, if this increase in DA occurs, it can be taken from 61% to 63%. Its direct benefit will be visible in the take-home salary and pension of employees and pensioners, which will increase the income of lakhs of people.
What is Dearness Allowance (DA)?
Dearness Allowance is a special allowance given by the government to employees and pensioners to cope with rising inflation. As the prices of commodities like milk, pulses, petrol increase, the gap between the basic salary of the employee and the actual expenditure increases. To accomplish this, the government adds a certain percentage on the basic pay, which is called DA.
Let us tell you that the calculation of DA is based on the data of All India Consumer Price Index (AICPI). DA calculation is different for urban and rural areas. The allowance given to retired employees is called dearness relief.
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