DA Hike Update: Central Government Employees Await Announcement

What is the current status of the dearness allowance (DA) hike for central government employees? As of March 25, 2026, the Union Cabinet has not announced any increase in the DA, which currently stands at 58%.

The DA hike is expected to be announced for the January-June cycle, with a typical review occurring twice a year, around Diwali in October and Holi in March. A 2% increase in DA would raise it from 58% to 60% of basic pay, benefiting over 1.2 crore central government employees and pensioners.

The DA is calculated based on the Consumer Price Index (CPI), and the last increase was approved in October 2025, which was a 3% hike. If approved, a 2% increase would add ₹360 to the minimum salary of ₹18,000, raising the total minimum salary under the 7th Pay Commission to ₹28,800 at a 60% DA rate.

Union Minister Ashwani Vaishnav stated, “The Union Cabinet has not announced any increase in dearness allowance for central government employees so far.” This leaves many employees and retirees awaiting further information.

Details remain unconfirmed regarding the exact date of the DA hike announcement and the specific percentage increase. The anticipation continues as the central government employees look forward to the announcement that could significantly impact their earnings.