Central Staff DA Hike Before Holi: Minimum ₹10,800

Just before Holi, the central government might give its workers good news. The Dearness Allowance (DA) could rise by 2% if current projections hold true, raising the minimum DA for the lowest-paid workers to ₹10,800 per month. The fact that Dearness Relief (DR) would be based on DA means that pensioners will also probably gain.

Central Government DA Hike Expected

The 7th Pay Commission framework now provides 58% DA to central government employees. Since October 2025, when the government authorized a 3% increase based on the most recent inflation figures, this rate has been in force. There are now more predictions of another increase following the release of new inflation statistics.

DA Calculation & New Minimum

The Labor Ministry’s monthly release of the AICPI-IW (All India Consumer Price Index–Industrial Workers) is the cause of the DA modification. In December 2025, the AICPI-IW was 148.2. The computed DA is almost 60.33% as the 12-month average has reached 145.54. This computation shows a 2% increase, bringing the DA to 60%, from the present DA of 58%.

How would Rs 10800 be the minimum DA?

For Level 1 workers, the minimal base salary is ₹18,000 per year.
DA at 60% of 18,000 = 10,800 per month – 2% of 18,000 = 360 per month

This implies that following notification of the raise, the lowest-paid central government employees’ monthly DA will increase to Rs 10,800.

Implementation & Arrears

The official announcement of the DA raise usually occurs later, even though it is anticipated to go into effect in January. Employees and pensioners are likely to get the updated DA along with arrears for the months of January and February in their income or pension because of this time discrepancy.

In the nation’s capital, there is increasing speculation that the government would declare a DA hike prior to Holi, which is this year on March 4. The January DA raise is usually announced by the government in March, though occasionally the decision is made in the final week of February or early March. This timing is exactly in line with expectations right now.

Pensioners & DR

Serving employees will not be the only ones eligible for the DA hike. This boost will take the form of dearness relief (DR) for retiring employees. The conversion rate of DR and DA is same, guaranteeing parity between pensioners and employees. It is anticipated that this possible increase will help almost 1 crore individuals in total, including employees and pensioners.

7th Pay Commission Continuation

On December 31, 2025, the 7th Pay Commission’s mandate came to an official end; nevertheless, the 8th Pay Commission has not yet occurred.

DA and DR will continue to be paid using the 7th Pay Commission framework until the new Pay Commission proposals are put into effect. This implies that any DA increase that is declared today will be enforceable until the present pay structure is replaced by the new one.

Frequently Asked Questions

1. When will the DA hike take effect?

The DA hike is expected to be effective from January 2026, with arrears for January and February paid along with the salary or pension.

2. Who is eligible for the DA increase?

All central government employees and pensioners under the 7th Pay Commission framework are eligible.

3. How much is the new minimum DA for Level 1 workers?

The minimum DA for the lowest-paid Level 1 workers will increase to ₹10,800 per month.

4. How is the DA calculated?

DA is calculated based on the All India Consumer Price Index–Industrial Workers (AICPI-IW) using the 7th Pay Commission framework.

5. Will pensioners receive the same increase?

Yes, Dearness Relief (DR) for pensioners is based on DA, ensuring parity between employees and retirees.

Disclaimer: This article is for informational purposes only. Confirm official DA notifications from the Government of India before acting on the information provided.