8th Pay Commission DA Hike 2026: Central Government Employees Likely to Get 2% DA Increase from January
8th Pay Commission DA Hike 2026 | Big relief for central government employees and pensioners! As per the latest AICPI-IW data released by the Labour Bureau, Dearness Allowance (DA) and Dearness Relief (DR) are likely to increase by 2% from January 2026. If approved by the government, DA will rise from 58% to 60%, leading to a direct increase in monthly salary and pension.
The official DA hike announcement is expected in March 2026, possibly before the Holi festival, bringing timely financial relief amid rising inflation.
DA Hike January 2026: Latest Update
According to the December 2025 AICPI-IW data, the index remained unchanged at 148.2, same as November 2025. Based on the last 12 months’ data, the average AICPI-IW stands at 145.54, which indicates a 2% DA hike under the standard calculation formula.
Expected DA Rate (January 2026)
Current DA: 58%
Expected DA: 60%
Increase: 2%
Why is DA Likely to Increase by 2%?
Dearness Allowance is revised based on inflation data measured through AICPI-IW. Even though the December index did not rise, the 12-month average remains strong enough to push DA to the next slab.
DA Calculation Formula
DA (%) = {[(12-month average AICPI-IW × 2.88) − 261.42] ÷ 261.42} × 100
Calculation Using December 2025 Data
145.54 × 2.88 = 419.15
(419.15 − 261.42) ÷ 261.42 × 100
DA = 60.33% → Rounded to 60%
📌 The factor 2.88 is used to link the 2016 CPI base year with the 2001 base year, as per 7th Pay Commission norms.
AICPI-IW Data (Last 12 Months)
| Month | Index |
|---|---|
| Jan 2025 | 143.2 |
| Feb 2025 | 142.8 |
| Mar 2025 | 143.0 |
| Apr 2025 | 143.5 |
| May 2025 | 144.0 |
| Jun 2025 | 145.0 |
| Jul 2025 | 146.5 |
| Aug 2025 | 147.1 |
| Sep 2025 | 147.3 |
| Oct 2025 | 147.7 |
| Nov 2025 | 148.2 |
| Dec 2025 | 148.2 |
| Average | 145.54 |
What is Dearness Allowance (DA)?
Dearness Allowance (DA) is a cost-of-living adjustment paid to central government employees, while Dearness Relief (DR) is paid to pensioners.
Key Points About DA
Compensates for inflation
Calculated as a percentage of basic pay
Revised twice a year:
January
July
Directly impacts salary, pension, and retirement benefits
What is AICPI-IW?
AICPI-IW (All India Consumer Price Index – Industrial Workers) tracks changes in retail prices of essential goods and services consumed by industrial workers.
It is used for:
DA & DR calculation
Wage revision
Inflation assessment
The index is released monthly by the Labour Bureau.
Previous DA Hike
In October 2025, the central government approved a 3% DA hike, increasing DA from 55% to 58%, based on June 2025 AICPI-IW data.
Expected Impact of 2% DA Hike on Salary (January 2026)
A 2% DA increase may look small, but it significantly impacts monthly income.
| Basic Pay | Salary @ 58% DA | Salary @ 60% DA | Monthly Increase |
|---|---|---|---|
| ₹20,000 | ₹31,600 | ₹32,000 | ₹400 |
| ₹30,000 | ₹47,400 | ₹48,000 | ₹600 |
| ₹40,000 | ₹63,200 | ₹64,000 | ₹800 |
| ₹50,000 | ₹79,000 | ₹80,000 | ₹1,000 |
| ₹60,000 | ₹94,800 | ₹96,000 | ₹1,200 |
| ₹70,000 | ₹1,10,600 | ₹1,12,000 | ₹1,400 |
| ₹80,000 | ₹1,26,400 | ₹1,28,000 | ₹1,600 |
| ₹90,000 | ₹1,42,200 | ₹1,44,000 | ₹1,800 |
| ₹1,00,000 | ₹1,58,000 | ₹1,60,000 | ₹2,000 |
8th Pay Commission and DA Hike 2026
Although the 7th Pay Commission ended on 31 December 2025, the 8th Pay Commission became effective from 1 January 2026.
However:
DA & DR will continue under existing rules
DA hikes will remain applicable
Revised pay structure will be implemented once recommendations are approved
DA Hike Central Government Employees 2026 – Key Highlights
- DA likely to increase by 2% from January 2026
- Expected DA rate: 60%
- Based on December 2025 AICPI-IW data
- Official announcement likely in March 2026
- Salary & pension to rise automatically
Final Verdict
The expected 2% DA hike in January 2026 will provide meaningful financial relief to central government employees and pensioners. While inflation remains a concern, the steady rise in AICPI-IW ensures continued protection of purchasing power.
👉 All eyes are now on the official government notification expected in March 2026.