Central government employees could be in for some welcome news just before Holi. If current expectations play out, the Dearness Allowance (DA) may rise by 2%, taking the minimum DA to Rs 10,800 per month for the lowest-paid staff. Pensioners, too, are likely to benefit, as Dearness Relief (DR) moves in line with DA.
Here’s how the numbers stack up and why a Holi-time announcement is being widely expected.
Current DA stands at 58%
At present, central government employees are getting 58% DA under the 7th Pay Commission framework. This rate has been in force since October 2025, after the government approved a 3% hike based on inflation data available at that time.
Now, with fresh inflation numbers in place, expectations of another increase have gained momentum.
Why a 2% DA hike looks likely
The trigger for DA revisions is the AICPI-IW (All India Consumer Price Index–Industrial Workers), released every month by the Labour Ministry.
AICPI-IW for December 2025 stood at 148.2
The 12-month average has reached 145.54
This translates into a calculated DA of around 60.33%
Since the current DA is 58%, this arithmetic strongly points to a 2% hike, taking the DA to 60%.
How minimum DA becomes Rs 10,800
For employees at Level 1, the minimum basic pay is Rs 18,000.
2% of Rs 18,000 = Rs 360 per month
DA at 60% of Rs 18,000 = Rs 10,800 per month
This means the lowest-paid central government employees will see their monthly DA touch Rs 10,800 once the hike is notified.
Two months’ arrears likely
Although the DA hike is expected to be effective from January, the formal announcement usually comes later. Because of this timing gap, employees and pensioners are likely to receive arrears for two months—January and February—along with the revised DA in their salary or pension.
Holi announcement buzz grows louder
There is growing buzz in the national capital that the Narendra Modi-led government could announce the DA hike before Holi, which falls on March 4 this year.
Traditionally, the government announces the January DA hike in March, and many times the decision comes in the last week of February or early March. That timing neatly aligns with the current expectations.
Pensioners to benefit equally through DR
The DA hike won’t be limited to serving employees. For retired staff, the increase comes as Dearness Relief (DR). DR is revised at the same rate as DA, ensuring parity between employees and pensioners.
In total, over 1 crore people, including employees and pensioners, are expected to benefit from this likely hike.
What about the 8th Pay Commission?
The term of the 7th Pay Commission officially ended on December 31, 2025, but the 8th Pay Commission is yet to be implemented.
Until the new pay commission’s recommendations come into force, DA and DR will continue under the 7th Pay Commission framework. This means any DA hike announced now will remain valid and payable until a new pay structure replaces the current one.
What employees should watch next
All eyes are now on the government’s formal announcement, expected around the end of February or early March. If the pattern holds, central government employees and pensioners could be celebrating a higher DA, arrears, and a Holi bonus of sorts—all at the same time.