By Central Pay Commission Admin
Budget 2026 Countdown: Ministry of Finance Likely to Clarify 8th Pay Commission Roadmap | 4% DA Hike Confirmed
New Delhi | January 3, 2026
NEW DELHI: With less than four weeks left for the Union Budget 2026, the North Block is buzzing with activity. While the Ministry of Finance remains tight-lipped, sources suggest that Finance Minister Nirmala Sitharaman may finally break the silence on the 8th Pay Commission allocation during her speech on February 1.
This speculation comes at a time when the Labour Bureau has already released the AICPI data for November 2025 (148.2 points), effectively confirming a 4% DA Hike for January 2026. This brings the total Dearness Allowance to 62%, crossing the critical 50% threshold for the third time.
📊 Budget 2026: What Employees Expect
The Joint Consultative Machinery (JCM) has tabled three major demands:
- Official Timeline: A clear date for the 8th CPC report submission (currently expected mid-2027).
- Fitment Factor: An interim relief announcement raising the fitment factor from 2.57 to 3.00.
- 18-Month Arrears: A one-time settlement for the frozen DA during the COVID-19 pandemic.
The “Budget” Impact on Your Salary
Even if the 8th Pay Commission is not explicitly announced, the Budget will impact your take-home pay through Income Tax changes. As we analyzed in our Old vs New Tax Regime Guide, any tweak in the Standard Deduction (currently ₹50,000) will directly increase your savings.
Pro Tip: Don’t wait for the Budget to plan your finances. Use our DA Hike Jan 2026 Calculator to see your exact salary effective from this month.