DA increase may happen before Holi 2026
DA Hike: Holi, the festival of colors, is near and this time this festival can bring double happiness for central employees and pensioners. The Modi government at the Center is soon preparing to provide a big relief to lakhs of its employees. If you are also a central employee or a pensioner, then this news is directly related to your pocket and bank balance. If reports are to be believed, the government may announce an increase in Dearness Allowance (DA) just before Holi.
Will dearness allowance reach 60 percent?
At present, the biggest discussion in the government corridors is about the DA hike figures. At present central employees are getting dearness allowance at the rate of 58 percent. If we look at the media reports and the recent data of Labor Bureau, this time there is a possibility of increase in DA by 2 percent. If the government gives its approval to this proposal, then from January 1, 2026, dearness allowance and dearness relief (DR) will increase to 60 percent of the basic salary.
Although some employees were expecting the increase to be slightly higher, this calculation entirely depends on the All India Consumer Price Index for Industrial Workers (CPI-IW) data for December 2025. This index remained stable at 148.2 points for December, which was the same as in November. On the basis of this stability, an increase of 2 percent is being estimated.
You can get double gift in March
The Union Cabinet headed by Prime Minister Narendra Modi may approve this decision as early as March 2026. Since this increase will be considered applicable from January 1, 2026, the employees will not only get the increased salary but also the arrears of the previous months. This means that if the announcement is made in March, then the salary around Holi may include the increased salary of February and the outstanding arrears of January. Receiving a lump sum amount on the occasion of festival will be no less than a great gift. This is equally a relief news for pensioners as their Dearness Relief (DR) will also increase in the same proportion.
Relief will continue under the 7th Pay Commission
The current increase will be made as per the recommendations of the 7th Pay Commission. Till now, no formal green signal has been received from the government regarding the formation or implementation of the 8th Pay Commission. This DA hike will be the first review after the formal completion of the 7th Pay Commission on December 31, 2025.