Central Govt Employees Set for 2% DA Hike from Jan 2026; Salary to Rise Significantly

• Central government employees and pensioners are likely to receive a 2% Dearness Allowance (DA) and Dearness Relief (DR) hike from January 1, 2026.
• The latest All-India Consumer Price Index for Industrial Workers (AICPI-IW) for November 2025 confirms the DA/DR will reach the 60% level under the 7th Central Pay Commission.
• The November 2025 AICPI-IW rose by 0.5 points to 148.2, pushing the calculated DA to 59.93%, making a 60% DA almost certain due to rounding.
• The formal announcement is expected around March or April 2026, with arrears paid retrospectively from January 1, 2026.
• This hike is crucial as January 1, 2026, also marks the start of the 8th Central Pay Commission cycle, where the prevailing DA is merged into basic pay.

Why It Matters: Central govt employees and pensioners are almost certain to receive a 2% DA hike from January 2026.