Government employees might be in for some good news following the approval of the 8th Pay Commission. A rise in their dearness allowance (DA) could be on the horizon, which would benefit both employees and pensioners. Let’s break down how DA is calculated and when we might hear about this increase.
Right now, government employees are under the 7th Pay Commission, where DA is based on the All India Consumer Price Index (AICPI). The AICPI data helps the government decide how much to raise the dearness allowance. Recent data suggests a potential 3 percent increase in DA.
When can we expect the DA hike announcement? Based on past trends, it’s likely that the government will reveal the DA hike in March, just before Holi Purnima. If this happens, the new DA will be effective from January 1, 2026, meaning employees and pensioners would receive two months’ worth of DA along with their arrears.
So, how much of a salary bump can employees expect? The increase will vary depending on their current salary. The government might raise the dearness allowance from 53 to 56 percent, translating to a 3% increase. For instance, if someone is currently receiving a DA of Rs 15,000 a month, it would go up to Rs 15,450.
When can we expect the DA increase to be paid out?
The Dearness Allowance gets updated two times a year under the Seventh Pay Commission—once in January and again in July. This update is determined by the average of the AICPI index. The government might surprise government employees and pensioners with an early release before Holi. If the DA increase is announced in March, it could be included in the salaries for either March or April.