DA Confirmed at 60 Percent from January 2026! Big Impact on 8th Pay Commission Fitment Factor
DA January 2026: Great news awaits Central Government employees and pensioners at the very beginning of 2026. The latest All-India Consumer Price Index (AICPI-IW) data released by the Labour Bureau has all but confirmed that Dearness Allowance (DA) and Dearness Relief (DR) are set to touch the 60% mark starting January 2026. The index for November 2025, released on December 31, 2025, is poised to have a significant impact on government salaries.
Big Jump in November 2025 Index
The Labour Bureau, under the Ministry of Labour & Employment, released the AICPI-IW figures for November 2025 on December 31, 2025. According to this latest data, the Consumer Price Index has recorded an increase of 0.5 points, bringing the index to 148.2. This upward movement has further solidified the path for DA to reach 60% effective from January 1, 2026.
The index reflects the rising cost of living across industrial centers. The consistent rise in the index from July 2025 to November 2025 is detailed below:
| Month | AICPI-IW (Base 2016=100) | Monthly Change | 7th CPC DA % (Calculated) |
|---|---|---|---|
| July 2025 | 146.5 | +1.5 | 58.53% |
| August 2025 | 147.1 | +0.6 | 58.94% |
| September 2025 | 147.3 | +0.2 | 59.29% |
| October 2025 | 147.7 | +0.4 | 59.58% |
| November 2025 | 148.2 | +0.5 | 59.93% |
60% DA Almost Certain
Based on current calculations, the 12-monthly average has pushed the DA percentage to the doorstep of 60%. Although the index for December 2025 is yet to be released, analyzing the current trend makes a hike from the current 58% to 60% almost certain.
- Scenario 1: If the index remains steady at 148.2 in December, DA will reach 60.34% (rounded down to 60%).
- Scenario 2: If the index rises significantly to 150.2, DA will reach 60.53% (rounded down to 60%).
- Scenario 3: Even if the index drops slightly to 146.2, the average remains high enough to sustain a 60% DA.
The Government of India typically considers only the whole number for DA disbursement. Therefore, any figure between 60.00% and 60.99% will be officially announced as 60%.
Impact on 8th Pay Commission Fitment Factor
The DA revision for January 2026 is uniquely significant because today, January 1, 2026, marks the official commencement of the 8th Central Pay Commission (CPC). Historically, when a new Pay Commission is implemented, the existing DA is merged with the basic pay, and the DA for the new pay scale is reset to 0%.
This 60% DA figure will serve as a crucial “inflation buffer” in determining the Fitment Factor for the new salary structure under the 8th CPC. Central Government employees can expect a formal announcement regarding this DA hike by March or April 2026, with arrears paid retrospectively from January. This 2% jump provides a necessary cushion against retail inflation as employees transition into the new Pay Commission era.
