8th Pay Commission News / Analysis

DA Hike Forecast Jan 2026: 60% Rate Confirmed? Allowance Impact & Merger Truth

Krivan January 15, 2026 3 min read

Forecast: Jan 2026

DA HIKE FORECAST: 60% CONFIRMED?

(Impact on Allowances & The Merger Truth)

📈 Current Trend: 3% to 4% Hike Expected

⚡ Quick Answer: How much will DA rise?

Based on the latest AICPI-IW data trends (July-Nov 2025), the Dearness Allowance (DA) for Central Govt Employees is projected to cross the 60% mark effective from January 1, 2026. This would mean a likely hike of 3% to 4% over the current rate.

✅ Impact: While DA reaching 50% triggered a hike in HRA and Gratuity, crossing 60% does NOT trigger any automatic allowance revision. The next revision happens only at 100% DA.

🚫 The “Merger Myth” (Fact Check)

Rumour: “DA will merge into Basic Pay after 50% or 60%.”
Fact: The Government has officially stated in Parliament that there is NO proposal to merge DA with Basic Pay under the 7th CPC framework. DA will continue to be paid as a separate component until the 8th Pay Commission is implemented.

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Inflation numbers are out, and the calculation for the January 2026 Dearness Allowance is almost complete. With the index rising, employees can expect a healthy start to the new year, although the “Merger” hopes remain a distant dream.

Jump To:
The Calculation
|
Allowance Impact
|
Arrears Payment

1. The Math: Reaching 60%

The Labour Bureau releases AICPI-IW data every month. Here is the trend that points to 60%.

Month (2025)	AICPI Index	Expected DA %
July – Sept	Rising Trend	57.xx %
October	147.7 (Confirmed)	58.50 %
November	148.2 (Confirmed)	59.xx %
December	Awaited	Likely 60.00%+

2. Allowances: What Goes Up?

Employees often ask: “Will HRA increase again?”

🏠 HRA (House Rent)

No Change. HRA was already revised to 30%, 20%, 10% when DA touched 50%. The next revision will happen only when DA crosses 100%.

🚌 TA (Transport)

Increases Automatically. Since TA is paid as “Fixed Amount + DA thereon”, your net Transport Allowance will rise by 3-4% automatically.

3. Arrears Payment Timeline

🗓️ When will you get the money?
The official Cabinet approval usually comes in March 2026 (before Holi).
You will likely receive the increased salary in your March Pay Slip, along with 2 months of arrears (Jan & Feb) paid as a lump sum.

📥

Official Data Source:

Check AICPI Press Release (Labour Bureau)

❓ DA Common Questions

Will 8th Pay Commission be announced in Budget 2026?

Highly speculative. While unions are demanding it, the Finance Ministry has not given any official confirmation. Budget day (Feb 1) will clarify the stance.

Is DA tax-free?

No. Dearness Allowance is fully taxable. It is added to your Basic Pay to calculate your total taxable income slab.

🇮🇳 हिंदी में सारांश (Summary in Hindi)

जनवरी 2026 में कितना बढ़ेगा DA?
महंगाई के आंकड़ों (AICPI Data) के अनुसार, जनवरी 2026 से केंद्रीय कर्मचारियों का महंगाई भत्ता (DA) 60% के पार जाने की पूरी संभावना है। यानी इसमें 3% से 4% की बढ़ोतरी हो सकती है।

🚫 DA मर्जर (Merger Rule): सरकार ने साफ किया है कि DA को बेसिक सैलरी (Basic Pay) में जोड़ने का कोई प्रस्ताव नहीं है। यह अफवाहों पर ध्यान न दें।
🏠 HRA नहीं बढ़ेगा: DA 60% होने पर HRA नहीं बढ़ता है। HRA में अगली बढ़ोतरी तभी होगी जब DA 100% हो जाएगा।
💰 भुगतान कब होगा: इसका ऐलान मार्च 2026 में होने की उम्मीद है। आपको जनवरी और फरवरी का एरियर (Arrears) मार्च की सैलरी के साथ मिलेगा।

नोट: यह अनुमान श्रम ब्यूरो के आंकड़ों पर आधारित है। अंतिम मुहर कैबिनेट की बैठक में लगेगी।

Verified By: AICPI Data Analysis

Context: Jan 2026 Forecast

✓ Fact Checked