Central Govt Employees to See Modest 2% DA Hike in Jan 2026

• Central government employees and pensioners are likely to receive a 2% increase in Dearness Allowance (DA) from January 1, 2026.
• The hike will raise DA and Dearness Relief (DR) from 58% to approximately 60% of Basic Pay, marking a restrained start to the 8th Pay Commission phase.
• The Union Cabinet is expected to approve the DA revision in early March 2026, ahead of Holi, following the conclusion of the 7th Pay Commission.
• The 2% increase is among the lowest DA hikes in over seven years, driven by inflation numbers and the 7th Pay Commission formula.
• This transition-period hike is crucial as it sets the base for future salary and pension calculations under the upcoming 8th Pay Commission.