DA Hike: Government will open treasury before Holi! Central employees and pensioners will get the gift of dearness allowance

Dearness Allowance Hike Update: Central employees and pensioners now have their eyes set on the Dearness Allowance (DA) increase for January-June 2026. It is expected that the government can announce it before Holi in the first week of March. As has been the tradition every year. Generally DA of January is declared in March and DA of July is declared in October-November around Diwali. This time’s increase is being considered special because the 7th Pay Commission has completed its tenure on 31 December 2025 and now everyone’s eyes are also on the 8th Pay Commission.

At present, DA had reached 58% till December 31, 2025, which came into effect after the 3% increase in the July–December 2025 cycle. It is estimated that there may be an increase of 2% in January 2026, due to which DA will reach 60%. If that happens, it would be one of the lowest January increases in the last 26 years. However, not the least. There was only a 1% increase in January 2000, while January 2007, 2018 and 2025 saw a 2% increase. Even 1-2% matters to employees as it has a direct impact on monthly salaries, arrears and pensions.

8th Pay Commission process ahead

Meanwhile, the process of 8th Pay Commission is also progressing. The government had released its terms of reference on 3 November 2025. The official website of the Commission is live and the detailed questionnaire is available on the MyGov portal, the last date of which has been fixed as 16 March 2026. Only online suggestions are being accepted. The survey includes 18 important questions like fitment factor, annual increment, pension structure and revision in allowances. The commission has to give its final recommendations in 18 months.

According to initial estimates, the fitment factor could be between 1.83 to 2.46, which could lead to a salary increase of 30–34%. DA will be reduced to zero as soon as the new pay structure is implemented, as has been happening in every new pay commission.

50 lakh central employees will get benefits

About 50 lakh central employees and 69 lakh pensioners will benefit from the recommendations of this commission. Draft demands are also being prepared by the employee organizations and a meeting of the drafting committee is proposed on 25 February 2026. At present, everyone’s eyes are on the DA announcement to be made in March. Even if the increase is only 2%, it will continue to provide relief from inflation and may later be merged with the basic pay under the 8th Pay Commission.

Also read: If you retire before December 31, 2025, your pension will not increase, what is the reality of this claim? Big update on 8th salary

Overall, the year 2026 may prove to be a year of change for the employees. Where the 7th Pay Commission phase ends 8th pay commission There will be a new beginning.