8th Pay Commission: DA Hike Expected for Central Employees in January 2026

• Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners are calculated using the All India Consumer Price Index for Industrial Workers (AICPI-IW).
• The AICPI-IW for November 2025 was 148.2, directly impacting the upcoming DA revision.
• The next DA revision is due from January 2026; the government previously increased DA from 54% to 58% in July 2025.
• Employee unions anticipate a 3-5% DA increase in January, potentially raising it to 61-63% from the current 58%.
• The 7th Pay Commission ended on December 31, 2025, with the 8th Pay Commission formed in November 2025 to recommend a fitment factor for basic pay.

Why It Matters: Central government employees anticipate a 3-5% DA hike in January 2026, pending December's AICPI-IW data.