DA Hike News: Government May Increase DA By 2 Percent In January! Report Reveals

DA Hike News: Big news is coming for Central Government employees right before the end of the year. After a long wait, the possibility of a hike in Dearness Allowance (DA) at the beginning of the new year has become strong. According to reports, the government may increase the DA for its employees in January 2026. However, the rate of increase this time might evoke mixed reactions among the staff.

According to various recently published reports, the Central Government is set to hike Dearness Allowance and Dearness Relief (DR) starting from January 2026. Currently, Central Government employees receive DA at a rate of 58%. However, there are concerns that the hike this time could be slightly lower compared to the last few years.

What Could Be the Percentage of DA Hike?

Reports suggest that the government may increase the DA by only 2 percent this time. If this speculation turns out to be true, the total DA for Central Government employees will rise from 58% to 60%. Typically, the Central Government revises DA twice a year, in January and July. In recent years, DA hikes have generally been in the range of 3% to 4%, making a 2% increase potentially the lowest in the last seven years.

End of 7th Pay Commission Term

A significant point to note is that the term of the 7th Pay Commission is set to end on December 31, 2025. This means the DA hike in January 2026 could be the first revision outside the tenure of the 7th Pay Commission. Although the process for forming the 8th Pay Commission has begun, reports indicate that employees might have to wait until late 2027 or 2028 to reap its benefits.

Impact on Employees’ Salary

If the 2 percent DA hike is implemented, nearly 1 crore Central Government employees and pensioners will directly benefit. For instance, if an employee’s Basic Pay is ₹18,000, a 2% hike would result in a monthly salary increase of ₹360. While employees were hoping for major good news before the full implementation of the next Pay Commission, the news of a mere 2% hike might be a cause for some disappointment.

The government usually officially announces the DA hike around Holi, but it is considered effective from January, and the arrears are paid accordingly.