Good News for Central Govt Employees: 5% DA Hike Expected, Transport Allowance to Rise

• Central government employees and pensioners anticipate a 5% Dearness Allowance (DA) hike, increasing it from 58% to 63%.
• The next DA revision is due in January 2026, following the release of the All-India Consumer Price Index (AICPI-IW) for December 2025.
• A 5% DA increase will benefit 50.14 lakh central government employees and approximately 69 lakh pensioners with a rise in their Transport Allowance (TA).
• Transport Allowance is linked to DA and city category (X, Y, Z), with higher TA in X category cities.
• Other allowances like House Rent Allowance (HRA) are tied to basic salary revisions, expected with the 8th Pay Commission report in July 2028.

Why It Matters: Central government employees and pensioners can expect a 5% DA hike and increased Transport Allowance by January 2026.