Central govt employees get a boost: 60% DA hike with arrears brings cheer

New Delhi (The Uttam Hindu): Holi, the festival of colors, is near, and this year it could bring double joy to central government employees and pensioners. The Modi government is preparing to provide significant relief to millions of its employees just before the auspicious occasion of Holi. This news will directly impact employees' pockets and bank balances, as reports suggest the government may formally announce an increase in dearness allowance (DA) before Holi.

Will DA touch the 60 percent mark?

The most important discussion currently underway in government circles is regarding the new DA hike figures. Currently, central government employees are paid a 58% dearness allowance. Analyzing media reports and the latest data from the Labor Bureau, there's a strong possibility of a 2% increase in DA this time. If the government approves this proposal, the dearness allowance and dearness relief (DR) will increase to 60% of the basic salary from January 1, 2026. Although some employee organizations had hoped for a slightly higher increase, this calculation is based on the All India Consumer Price Index (CPI-IW) for industrial workers for December 2025. The index remained stable at 148.2 points in December, and based on this stability, a 2% increase has been estimated.

You will get double gift and arrears in the salary of March

It is expected that the Union Cabinet, chaired by Prime Minister Narendra Modi, may approve this decision in early March 2026. Since these new rates will be effective from January 1, 2026, employees will receive not only the increased salary but also arrears for previous months. This means that if the announcement is made in March, the salary received around Holi will include the increased salary for February and the pending arrears for January. Receiving a lump sum on the occasion of the festival will be no less than a major gift for employees. This is equally reassuring for pensioners, as their dearness allowance (DR) will also be increased proportionately, thereby increasing their monthly pension.

The system will continue under the 7th Pay Commission

The current pay hike for employees will be based on the recommendations of the 7th Pay Commission. The government has not yet formally approved the formation or implementation of the 8th Pay Commission. This DA hike will be the first review after the formal conclusion of the 7th Pay Commission on December 31, 2025, and will be carried forward under the old system.