Good News for Central Govt Employees: 2% DA Hike Likely; Here's How Much Your Salary Will Increase - Punjabi News

Published on: 06 Feb 2026 at 07:34 AM

Good News for Central Govt Employees: 2% DA Hike Likely; Here’s How Much Your Salary Will Increase

Published by: Gill Bikram

Good News for Central Govt Employees: 2% DA Hike Likely; Here’s How Much Your Salary Will Increase

New Delhi, February 6, 2026: Central government employees and pensioners awaiting the 8th Pay Commission have fresh hope, as December 2025 AICPI-IW data points to a 2% Dearness Allowance (DA) increase. This would raise total DA from 58% to 60% of basic pay, effective retroactively from January 1, 2026.

DA Calculation Formula

DA is calculated using the average All India Consumer Price Index for Industrial Workers (AICPI-IW) over 12 months, based on this formula:
$DA% = 261.42 (12-month average AICPI-IW) - 261.42 \times 100$
(Note: 2016 base indices are multiplied by 2.88 to align with the 2001 base year.)

Salary Increase Examples (Basic Pay ₹20,000–₹90,000)

With a 2% DA hike, monthly basic + DA pay rises as shown (excluding HRA/TA):

Basic Pay (₹)	DA at 58% (₹)	DA at 60% (₹)	Monthly Gain (₹)
20,000	31,600	32,000	400
30,000	47,400	48,000	600
40,000	63,200	64,000	800
50,000	79,000	80,000	1,000
60,000	94,800	96,000	1,200
70,000	1,10,600	1,12,000	1,400
80,000	1,26,400	1,28,000	1,600
90,000	1,42,200	1,44,000	1,800

Annual gain: ₹4,800–₹21,600+ per employee.

Key Highlights

Announcement expected before Holi in March 2026, with arrears from January.
Pensioners get matching 2% Dearness Relief (DR) hike.
Applies under 7th Pay Commission until 8th is implemented (report due mid-2026).