DA Hike: There's great news for central government employees and pensioners. Amidst rising inflation, the good news is that a 2 percent increase in Dearness Allowance (DA) and Dearness Relief (DR) from January 2026 is considered almost certain. If you are a government employee, you can expect a significant increase in your salary soon. Currently, employees are receiving a 58 percent dearness allowance, which could reach 60 percent after this new increase.

The figure will cross 60%
According to a report by Moneycontrol, this increase is not based on speculation, but on solid government data from the Labour Bureau. The All India Consumer Price Index (AICPI-IW), used to calculate DA, rose by 0.5 points to 148.2 in November 2025. The 7th Pay Commission rules state that the average of the last 12 months is considered for determining the DA.

Looking at the data from July to November 2025, the graph has consistently moved upwards. Based on the November figures, the dearness allowance reaches 59.93 percent. This clearly indicates that the dearness allowance is very close to 60 percent, and there seems to be no possibility of it going down now.

Whatever the December number is, the increase is certain
Now all eyes are on the December 2025 index, which is yet to be released. But according to experts, the picture is not going to change now. The math is very simple; even if the index remains stable in December, the average DA will still be 60.34 percent. Even if the index falls slightly, it will still maintain the 60 percent level.

The government's policy has been to announce the dearness allowance in whole numbers, not in decimals. Therefore, any figure between 60.00 percent and 60.99 percent will ultimately be considered 60 percent. This means that the current 58 percent is almost certain to increase by 2 percent, reaching 60 percent.

When will the announcement be made?
Although these increased rates will be effective from January 1, 2026, due to government procedures, the official announcement and notification usually come in March or April. Employees will be paid the difference from January until the announcement as arrears.

This increase is particularly significant because the new cycle of the 8th Pay Commission is considered to begin from January 1, 2026. Whenever a new pay commission is implemented, the existing Dearness Allowance (DA) is merged with the basic salary, and the DA calculation starts again from zero. Therefore, this 60 percent figure will play a crucial role in determining the new salary structure and fitment factor for employees in the future.

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