Good news for employees and pensioners, DA hike may cross 60% in January

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.

New Delhi: There’s great news for central government employees and pensioners. Amidst rising inflation, the good news is that a 2 per cent 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 per cent dearness allowance, which could reach 60 per cent after this new increase.

Dearness Allowance Very Close To 60 Per cent

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 per cent. This clearly indicates that the dearness allowance is very close to 60 per cent, and there seems to be no possibility of it going down now.

Irrespective Of The December Number, 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 per cent. Even if there is a slight drop in the index, it will still maintain the 60 per cent level.

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

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.