DA Hike 2026: How Much Your Salary Will Increase As DA May Rise To 60% Or 61%

The wait for the Dearness Allowance (DA) hike for central government employees may soon end, with an announcement expected in the coming weeks. After the Holi festival, attention has shifted to the next Union Cabinet meeting, where the decision is likely to be approved.

Traditionally, the government revises DA twice a year, around Holi and Diwali. In 2025, the hike was announced on 28 March. Following this pattern, officials expect the 2026 revision to be declared by the end of March or early April.

The increase will be effective from 1 January 2026, meaning employees and pensioners will receive arrears for the previous months.

Expected DA Increase

The current DA stands at 58%, fixed in October 2025. Based on AICPI-IW data, a 2% rise is almost certain, taking it to 60%. There is also a possibility of a 3% hike, which could raise it to 61%.

Impact on Salaries

A DA increase will lead to a noticeable rise in salaries across pay levels. For example:

• Employees with a basic salary of Rs 18,000 may see their total pay rise to about Rs 28,800 with a 2% hike and Rs 28,980 with a 3% hike.
• At Rs 29,200 basic pay, salaries could increase to around Rs 46,720 or Rs 47,012.
• Those earning Rs 56,100 may receive up to Rs 90,321 with a 3% increase.
• Senior officials with Rs 2.5 lakh basic pay could see salaries cross Rs 4 lakh.
   

Arrears and Future Outlook

Even if the announcement comes later, the hike will be applied from January, ensuring arrears for at least two to three months.

This revision is significant as it comes after the end of the 7th Pay Commission term in December 2025. Until recommendations from the upcoming 8th Pay Commission are implemented, DA revisions will continue under the current formula.