DA Hits 60% Mark: Central Government Employees to See Biggest Salary Boost in Years

The All India Consumer Price Index for Industrial Workers (AICPI-IW) closed at 148.2 for December 2025, pushing Dearness Allowance to 59.93%—which rounds up to exactly 60% as per established practice. This triggers the largest single DA jump in over a decade for 1.1 crore central government employees and pensioners.

Effective from January 1, 2026, this comes alongside 8th Pay Commission implementation. For a typical Level 1 employee earning ₹18,000 basic pay, the additional DA alone adds ₹10,800 monthly. Add the fitment factor (expected 2.28 minimum), and total take-home crosses ₹45,000.

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Arrears Payment Timeline

Expect 6 months of arrears (January to June 2026) deposited via Direct Benefit Transfer linked to Aadhaar by end of Q2 2026. India Post employees and GDS staff particularly benefit as their payment systems are already DBT-ready.

“This DA revision aligns perfectly with 8th CPC rollout, giving employees immediate relief while the commission finalizes fitment details.” — Government sources, January 2026