Govt Employees' DA Hike: Just 2% Expected in Jan 2026, 7-Year Low

• Central government employees and pensioners may see only a 2% Dearness Allowance (DA) hike in January 2026, reaching 60%, the lowest increase in seven years.
• The small 2% hike is attributed to rounding rules in DA calculation, despite a gradual increase in the AICPI-IW data.
• The 7th Pay Commission ends on December 31, 2025. The 8th Pay Commission's implementation is expected by late 2027 or early 2028, as no clear date has been set.
• The next four DA revisions (Jan 2026 - July 2027) are crucial as the accumulated DA will merge with basic pay under the 8th Pay Commission, impacting future salaries.
• A 2% hike means a monthly increase of only Rs 1,000 for an employee with a basic pay of Rs 50,000, offering limited relief against inflation.

Why It Matters: A mere 2% DA hike for central govt staff impacts future basic pay and 8th Pay Commission.