DA hike: There is a good news for central government employees and pensioners. A 2 percent increase in Dearness Allowance (DA) and Dearness Relief (DR) from January 2026 is considered almost certain. This is expected to provide relief from rising inflation. This means that the time has come for the government employees and retired pensioners working under the Central Government to increase their salary and pension. At present, employees are getting dearness allowance at the rate of 58 percent and with the upcoming increase of 2 percent, it will become 60 percent.

On what basis is DA decided?

According to a report by Moneycontrol, speculations are not being made merely on the basis of estimates, rather the news of 2% increase in DA and DR is based on solid government data from the Labor Bureau. The All India Consumer Price Index (AICPI-IW), used for DA calculation, has increased by 0.5 points to 148.2 in November 2025.

According to the rules of the 7th Pay Commission, to determine DA, the Consumer Price Index (CPI-IW) of the last 12 months is considered, which is based on the expenditure on daily food items, transport, accommodation and health services.

What do experts say?

If we look at the data from July to November 2025, the graph has continuously gone upwards. Based on the data of November, the dearness allowance seems to have reached 59.93 percent, which clearly shows that the dearness allowance is very close to 60 percent and now there is no possibility of it going down.

Now all eyes are on the index for December 2025, which is yet to be released. But according to experts, the picture is not going to change now. The mathematics is very simple, even if the index remains stable in December, the average DA will be 60.34 percent. Even if there is a slight decline in the index, it will still remain at the level of 60 percent.

When will it be announced?

The government’s policy has always been that it declares dearness allowance not in decimal but in whole figures, hence any figure between 60.00 percent and 60.99 percent will ultimately be considered as 60 percent. This means that it is almost certain that the dearness allowance will increase by 2 percent from the current 58 percent to 60 percent.

Although these increased rates will be effective from January 1, 2026, due to government procedures, the official announcement and notification usually comes in March or April. The difference from January till the announcement will be given to the employees as arrears. This increase is also special because the new cycle of the 8th Pay Commission is believed to start from January 1, 2026.

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DA Hike News: These days a message is going viral on the social media app WhatsApp, in which it is being claimed that the Central Government has decided to abolish some special benefits given to retired government employees after retirement. It has been said in the WhatsApp message that this change is part of the Finance Act 2025.

It has been claimed in the message that under the new rule, pensioners will no longer get any benefit from increase in Dearness Allowance (DA) or future pay commission. One of these includes the upcoming 8th Pay Commission. Apparently the central employees are in tension after this message went viral. Now the government has given clarification regarding this. Let us know what is the truth?

The government told what is the truth

PIB Fact Check in its official

PIB wrote on

PIB Fact Check has clearly declared this to be a fake claim. It has been clearly stated by the government that the benefits related to DA hike or pay commission for retired employees have not been abolished.

Will retired Govt employees stop getting DA hikes & Pay Commission benefits under the Finance Act 2025

A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired… pic.twitter.com/T3ylHEvCXt

— PIB Fact Check (@PIBFactCheck) December 13, 2025

don’t trust at all

PIB also wrote on This decision of the government is being presented in a distorted manner. The government appealed to citizens to beware of such investment scams and advised people not to believe such news and to verify the information before trusting and sharing.

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8th Pay Commission: These days, a message is becoming increasingly viral on many social media apps like WhatsApp, in which it is being claimed that under the Finance Act 2025, the benefits of increase in Dearness Allowance (DA) and pay commission to retired government employees will stop. Of course, this claim has given sleepless nights to lakhs of pensioners. However, now they are going to get relief from the clarification given by the government. The Central Government’s press agency Press Information Bureau (PIB) has denied this claim and called it all true. It has also appealed to the people not to trust such misleading messages and to verify the authorized source before sharing them.

PIB investigated the claim

PIB said in a social media post on the
PIB Factcheck said that the only amendment made in Rule 37 of the CCS (Pension) Rules, 2021 is that if a government employee is dismissed due to any wrongdoing, then the pension and other benefits received by him after retirement will be confiscated. Apart from these, general retired employees will continue to get the benefit of DA increase or pay commission. PIB In May this year, PIB had issued a press release informing about the amendment made in Rule 37 of CCS (Pension) Rules 2025.

Will retired Govt employees stop getting DA hikes & Pay Commission benefits under the Finance Act 2025

A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired… pic.twitter.com/E2mCRMPObO

— PIB Fact Check (@PIBFactCheck) November 13, 2025

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Eighth Pay Commission Updates: More than one crore government employees and pensioners across the country are eagerly waiting for the Eighth Pay Commission and are keeping a close eye on every development taking place on it. Although, the government had approved the formation of the Eighth Pay Commission in January 2025, but the official notification has not been issued yet nor has the chairman and members of the commission been appointed.

One crore employees-pensioners waiting

The formation was expected by Diwali, but the Central Government has clarified that intensive discussions are going on with the state governments on this subject. Minister of State for Finance Pankaj Chaudhary had told in the Rajya Sabha that the notification regarding the commission is yet to be issued. However, he also said that the final decision on this has not been taken yet, but preparations are going on.

As soon as the notification is issued, the chairman and members of the commission will be appointed. The formal announcement of the formation of the Eighth Pay Commission was made on 16 January 2025. Its objective is to review the pay structure, allowances and pension of central employees. But according to sources, its implementation is not considered possible before 2026.

What is fitment factor?

Fitment factor plays the most important role in the new pay structure, because it directly affects the calculation of basic salary and pension. In the Seventh Pay Commission, the fitment factor was kept at 2.57. At that time the minimum salary was fixed at Rs 18,000 and minimum pension at Rs 9,000, while DA and DR were 58 percent.

If the government increases the fitment factor to 1.92 in the Eighth Pay Commission, then the minimum salary will be Rs 34,560 and the minimum pension will be Rs 17,280. At the same time, if it is increased to 2.08, then the basic salary can reach Rs 37,440 and pension can reach Rs 18,720. Moreover, as soon as the new pay commission comes into effect, DA and DR will automatically become zero (0%).

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DA Hike: Before Diwali, many state governments have given good news to their employees. The governments of Jharkhand, Madhya Pradesh, Uttarakhand and Himachal Pradesh have announced an increase in Dearness Allowance (DA) and Dearness Relief (DR) of employees and pensioners.

3 percent increase in Jharkhand

Jharkhand government on Tuesday increased the DA of state employees by three percent to 58 percent. DR for pensioners has also been increased to 58 percent. Earlier this rate was 55 percent. This increase will be effective from July 1. This decision was taken in the cabinet meeting chaired by Chief Minister Hemant Soren. This decision will benefit about three lakh employees and pensioners of the state. A total of 24 proposals were approved in the meeting, including the proposal to purchase 207 Advanced Life Support (ALS) ambulances.

DA-DR increased by 2 percent in Madhya Pradesh

Chief Minister Mohan Yadav’s cabinet has announced a two percent increase in DA and DR of state employees and pensioners. Along with this, the state government has also decided to form ‘ShreeAnn Federation’ to promote ShreeAnn (coarse grains).

3 percent increase in Uttarakhand

Chief Minister Pushkar Singh Dhami’s government has given big relief to the state employees before Diwali. The government has increased DA and DR by three percent. After this, dearness allowance has increased from 55 percent to 58 percent. This increase will also be applicable from July 1. About 2.5 lakh employees of the state will benefit from this.

DA increased by 3 percent in Himachal Pradesh also

Chief Minister Sukhwinder Singh Sukhu’s government has also announced to increase the DA of state employees and pensioners by three percent before Diwali. Along with this, it has also been decided to give the arrears from April to September to the employees before Diwali.

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According to recent reports, the Eighth Pay Commission can be applicable only in the beginning of 2026 instead of 2027. Last month, in the same connection, representatives of the National Federation (GENC) met Union Minister Jitendra Singh. Jitendra Singh confirmed that the matter is actively negotiating with the state governments, which is expected to make official announcements about the commission and its panel soon.

How much salary will increase?

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7th pay commission da hike: After improvement in GST rate, now the central government employees are expected to get a ‘good news’ before the festive season. It is being told that the dearness allowance (DA) of central government employees is going to increase soon. The government can announce the DA hike before Diwali for the long -a -time employees and pensioners who have been waiting for the formation of the 8th Pay Commission. This step will provide great relief to more than 1.2 crore central government employees and pensioners. Employees are being estimated to get the benefit of increasing earnings before Dussehra and Diwali.

Three months arrears will also be available

The Central Government employees are expected to increase from DA 55 percent to 3 percent to 58 percent. Since this increase will be considered applicable from July 2025, the central government employees and pensioners will get the salary and pension of July, August and September by adding the arrears of three months. According to the information received, in the first week of October, a formal announcement of 3 percent DA hike can be made. The government will announce this at such a time, so that employees and pensioners can get some relief in the festive season.

The government amends the dearness allowance to give relief to its employees from increasing inflation-Dearness Allowance (DA) twice a year, which are implemented from 1 January and 1 July. Whereas its growth is announced twice a year-February-March and September-October. In view of inflation this year, there is a possibility of an increase of 3-4 percent in DA for central government employees in July 2025. This is expected to provide relief to employees from the effect of inflation.

How is calculation done?

DA hike for industrial workers is calculated on the basis of CPI-IW, which is issued every month. The government calculates the increase in dearness allowance by taking out the average of the CPI-IW data of the last 12 months and using a special formula under the Seventh Pay Commission. Understand this in this way- from July 2024 to July 2025, the CPI-IW average was 146.3. Based on this, the existing DA 55 percent to 3 percent will increase to 58 percent.

Da hike: Before Rakshabandhan, the government can give a big gift to central employees. It is estimated that there may be an increase of 3 percent in Dearness Allowance for the period of July-December 2025. With this, it can now increase from the current 55 percent to 58 percent. Usually the government amends dearness allowance twice a year, which is officially announced later. DA gets to government employees, while DR (Dearness Relief) gets to pensioners.

According to AICPI-IW data, this can increase so much

Usually, the government forms a pay commission to review the salary of its employees every 10 years and to revise it. The 7th Pay Commission is ending on 31 December 2025, which came into effect from 1 January 2016. Now everyone is waiting for the formation of the 8th Pay Commission, which is expected to be implemented from January 1, 2026.

The government increases DA twice a year so that the salary of employees can also be adjusted according to the increasing inflation. In January, 2 percent DA was extended, which increased from 53 percent to 55 percent. Now in June, after the data of All India Consumer Price Index for Industrial Workers (AICPI-IW), it is likely to increase by 3 percent.

According to DA formula, there is a possibility of an increase of 58.18 percent in DA on calculations according to DA formula. After the government’s announcement, the DA is added to the salary. It is usually announced just before the festive season. In such a situation, this time also DA Hike can be announced around Diwali in October.

Da hike: Before Rakshabandhan, the government can give a big gift to central employees. It is estimated that there may be an increase of 3 percent in Dearness Allowance for the period of July-December 2025. With this, it can now increase from the current 55 percent to 58 percent. Usually the government amends dearness allowance twice a year, which is officially announced later. DA gets to government employees, while DR (Dearness Relief) gets to pensioners.

According to AICPI-IW data, this can increase so much

Usually, the government forms a pay commission to review the salary of its employees every 10 years and to revise it. The 7th Pay Commission is ending on 31 December 2025, which came into effect from 1 January 2016. Now everyone is waiting for the formation of the 8th Pay Commission, which is expected to be implemented from January 1, 2026.

The government increases DA twice a year so that the salary of employees can also be adjusted according to the increasing inflation. In January, 2 percent DA was extended, which increased from 53 percent to 55 percent. Now in June, after the data of All India Consumer Price Index for Industrial Workers (AICPI-IW), it is likely to increase by 3 percent.

According to DA formula, there is a possibility of an increase of 58.18 percent in DA on calculations according to DA formula. After the government’s announcement, the DA is added to the salary. It is usually announced just before the festive season. In such a situation, this time also DA Hike can be announced around Diwali in October.

Da hike in July 2025: It is being said that a big gift can be given to government employees and pensioners before Rakshabandhan on behalf of the central government. The government can increase their dearness allowance – DA. The last time the central government had increased the DA by two percent in March this year, after which DA increased to 55 percent.

The government revise the dearness allowance at an interval of every six months, these are two months- January and July. After the approval of the Union Cabinet, this allowance is implemented. But, do you know on what basis the government decides to increase the DA of central personnel? Let us know about this in detail.

How is DA decided?

Actually, dearness allowance CPI-IW (Consumer Price Index for Industrial Workers) is based on the Consumer Price Index for industrial workers. This index is based on the prices of everyday things – like clothes, food items, fuel etc. Dearness allowance is made on a particular formula, which is based on the CPI (Consumer Price Index) issued by the Labor Bureau of the Ministry of Labor.

The government takes out its average by taking CPI-IW data for the last 12 months and then decides the DA from the formula of the Seventh Pay Commission. It can be understood that the CPI-IW average has been 143.3 in July 2025. That is, according to the current base year, the data that comes updated is calculated as expensive.

What is the calculation formula?
The government takes out its average by taking CPI-IW data for the last 12 months and then decides the DA from the formula of the Seventh Pay Commission.

DA (%) = [(AICPI – 115.76) ÷ 115.76] × 100

AICPI = 12 months CPI-IW average (based on 2016 base year = 100)
115.76 = This is Aadhaar average (CPI value of January 2016)

For example-

Suppose the average CPI-IW = 139.10 of 12 months is, then da = [(139.10 – 115.76) ÷ 115.76] × 100
= (23.34 ÷ 115.76) × 100
= 20.16%

That is, dearness allowance will be equal to about 20 percent.

How much can DA increase this time?

If the CPI-IW averaged by July 2025 is around 143.3, then the increase of 3 to 4 percent in DA is considered possible. In such a situation, DA can increase from 55% to 58-59%, which will be a relief news for millions of central employees and pensioners.

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