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Moneycontrol05-01-2026, 11:28

Central Govt Employees Await DA Hike: Will it be 2% or 3%?

  • Central government employees anticipate a semi-annual revision of Dearness Allowance (DA) and Dearness Relief (DR).
  • The upcoming hike is speculated to be either 2% or 3%, building on the current 58% DA.
  • The exact increase will be confirmed after December's AICPI-IW data, but November figures suggest a notable rise.
  • DA is calculated using AICPI-IW data, with a linking factor of 2.88 to convert 2016 base year data to the 2001 base.
  • The 8th Pay Commission's recommendations are due by May 2027; DA/DR revisions will continue until then, potentially impacting future salaries and pensions.

Why It Matters: Central government employees are set for a DA/DR hike, likely 2% or 3%, with implications for future pay and pensions.

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