New Delhi. The possibility of increase in Dearness Allowance (DA) for central government employees and pensioners from January 2026 has increased. Based on the data and index released by the Ministry of Labor and Employment, it is estimated that DA may reach around 60%.
Why DA may increase:
Dearness Allowance is calculated on the basis of All India Consumer Price Index – Industrial Workers (AICPI-IW). In November 2025, this index reached 148.2. If we look at the 12 month average index, it was around 59.93%, which is very close to the 60% limit. Due to the figures of December 2025 remaining at normal level, the possibility has increased that DA will be declared beyond 60% from January 2026.
The government always declares the dearness allowance rate in integers, so there is every possibility for employees and pensioners to get a hike of at least 2%. This means that the current 58% DA may increase to 60% from January 2026.
Impact of 7th and 8th Pay Commission:
The tenure of the 7th Pay Commission has ended on 31 December 2025, while the tenure of the 8th Pay Commission has started from 1 January 2026. Despite this, the increase in DA and DR will continue under the old system until the new recommendations are implemented.
Previous hikes and future announcements:
The government had increased DA from 54% to 58% in July 2025. The official announcement of the new rate, which will be applicable from January 2026, is likely to be made in March or April 2026. Along with this, arrears of the previous period will also be given to the employees and pensioners.
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