look news india
New Delhi: Relief news is coming for lakhs of central employees and pensioners who are eagerly waiting for the formation of the 8th Pay Commission. The latest data of All India Consumer Price Index (AICPI-IW) has made it clear that the Central Government is soon going to formally announce the increase in Dearness Allowance (DA) and Dearness Relief (DR). Although there was a demand of the employees that dearness allowance should be merged into the basic salary, but at present the government has ignored this demand and has indicated to increase it as per the existing formula of the Seventh Pay Commission.
AICPI index data gave good news
The biggest factor behind this increase in the salary of employees is the data of ‘All India Consumer Price Index-Industrial Workers’ (AICPI-IW). According to the data for December 2025 released by the Labor Bureau, the index remained stable at 148.2 points. The 12-month average AICPI-IW figure has now reached 145.54, after the index remained stable in both the months of November and December. Based on this calculation, a solid increase of 2 percent in dearness allowance is considered certain.
Understand in mathematics: How much dearness allowance will you get now?
At present, central employees are getting dearness allowance at the rate of 58 percent. Following December’s data, the calculations look like this:
$$\text{Total Dearness Allowance} = 60.33\%$$
Since the government always announces dearness allowance in round figures, it is 60 percent Will be considered. This means that now there will be a net increase of 2 percent in the DA of the employees. This increase will be considered effective from January 1, 2026, as the period of the Seventh Pay Commission has ended on December 31, 2025.
How much will be the impact on salary?
The direct impact of this 2 percent increase in dearness allowance will depend on the basic salary of the employee. This can be understood with a simple example:
| Description | Calculation (after 2% increase) |
|---|---|
| Basic Salary | ₹20,000 |
| Current DA (58%) | ₹11,600 |
| New DA (60%) | ₹12,000 |
| Total monthly increase in salary | ₹400 |
If the basic salary of an employee is ₹50,000, he will get an additional benefit of ₹1,000 every month. Similarly, the dearness relief (DR) of pensioners will also increase in the same proportion.
After Holi is over, when will it be announced?
Usually the government announces the increase in dearness allowance before the festival of Holi. This time, due to Holi being early and technical calculations taking time, a formal announcement has not been made yet. If sources are to be believed, it may be approved in the cabinet meeting by the last week of March 2026. There are many questions in the minds of employees regarding the Eighth Pay Commission, but until the recommendations of the Commission are not implemented, allowances will continue to be given under this system.
Demand to merge into Basic continues
Central employee organizations argue that when dearness allowance crosses 50 percent, it should be included in the basic salary. This also leads to a big jump in other allowances like HRA and gratuity. However, the government has clarified that at present no such proposal is under consideration. Now all eyes are on the cabinet meeting to be held at the end of March, where the fate of more than 1 crore employees and pensioners will be decided.