8th Pay Commission Implementation Big Update: DA and DR of Central govt likely to be hiked from THIS date, Group D, C, B And A Employees to get…

The AICPI-IW data for November has been released, and many central government employees and pensioners are eager to calculate the increase in dearness allowance (DA) and dearness relief (DR) that will take effect in January 2026.

Edited by: Joy Pillai

Updated: January 4, 2026, 2:02 PM IST

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8th Pay Commission: Experts say the delay may not simply be administrative.

8th Pay Commission Update: In the latest development in the 8th Pay Commission, as the time for the semi-annual revision of dearness allowance and relief is near, government employees and pensioners are expecting higher payouts. The All India Consumer Price Index–Industrial Workers (AICPI-IW) data for the month of November has been published, and government employees and pensioners are estimating the DA and DR hike effective January this year.

The actual DA/DR hike will be known after the release of the December data, which is expected in the first week of February. However, the November data can give an idea of where the DA is moving from its current level, which is 58 per cent.

However, the question remains the same – Will the DA hike be 2 percent or 3 percent?

What Is The Current DA/DR?

Following the July 2025 hike (3 percent), DA/DR for central government employees and pensioners is 58 percent. In January last year, the DA/DR was hiked by 2 percent, increasing it from 53 percent to 55 percent.

How Can You Calculate The DA? What Is The Formula?

DA percentage = [{12-month average of AICPI-IW (base year 2001)– 261.42}/261.42×100]

However, employees have to link 2016 base values to 2001 base values. They can do it by simply multiplying it by 2.88.

AICPI Inflation Data: What Are The Figures For The Past 12 Months?

As per the latest Labour Bureau data, CPI increased by 0.5 points to 148.2 (in November last year).

What is the Average AICPI of 12 months

The average AICPI of 12 months is 145.17.

What Is The Current DA rate And How To Calculate It?

DA percent = (145.17X2.88)– 261.42}/261.42×100]

= 418.06-261.42/261.42X100

0.5993X100= 59.93 percent.

Why Are Employees Desperately Waiting For DA Hike, and Why Is It Important?

It is to be noted that the salaries and pensions of government employees and pensioners are revised by the government every 10 years. This process is done through the  Pay Commission’s recommendations. As per the pay matrix the employees and pensioners’ annual increments.

In order to make sure their payout justify with the rising inflation, the central government increases the employees’ payouts through the process of  DA/DR revision. Usually, the revision of DA/DR takes place in January and July. The announcement is made before major festivals like Diwali and Holi.

The DR hike is crucial for pensioners, as unlike working employees, they are eligible for annual increments. They also don’t get allowances. DR is the only way to increase their payout for 10 years in a pay commission.