Modi Govt Set to Announce Holi DA Hike for Central Staff
The Modi government may announce a Dearness Allowance (DA) hike for central employees by Holi, according to reports released Tuesday. This “Holi gift” comes as the nation shifts from the 7th to the 8th Pay Commission framework.
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Currently, officials expect the cabinet to approve the rise in the first week of March. This timing aligns with the Holi festival on March 4. Therefore, nearly 50 lakh employees and 69 lakh pensioners could see a bump in their next paychecks.
Calculating the 2% Hike
Specifically, the DA is expected to rise by 2% for the January–June 2026 cycle. In fact, this calculation is based on the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Indeed, the December 2025 index stood at 148.2. Based on this, the math for the new DA percentage follows this formula:
Thus, the government usually rounds this down to 60%. Since the current rate is 58%, the net gain is 2%.
Historical Context of DA Revisions
Moreover, a 2% hike is quite rare. Actually, it would be one of the smallest January increases in the last 26 years. Still, it is not the lowest ever. For instance, the increase was only 1% in January 2000.
Meanwhile, years like 2007, 2018, and 2025 also saw 2% rises. Therefore, even a small rise is vital. This is because the allowance directly affects monthly pay, arrears, and final pensions.
The 8th Pay Commission Transition
Now, the focus has shifted entirely to the 8th Pay Commission. Specifically, the 7th Pay Commission formally ended its term on December 31, 2025. Therefore, the new commission is tasked with setting the new pay structure.
In fact, the government notified the Terms of Reference on November 3, 2025. Still, the DA hike revisions will continue under existing rules until the new report is ready. Once implemented, the DA is usually reset to zero and merged into the new basic pay.
Reality Check
The government calls this a gift. However, the 2% hike barely matches current inflation trends. In fact, retail inflation remains near 5.2%. Therefore, a 2% rise might not fully cover the rising cost of groceries and fuel. Thus, the real “gift” will only come when the 8th Pay Commission implements a higher fitment factor.
The Loopholes
Crucially, workers must watch out for a new 8th Pay Commission scam. Specifically, fraudsters have launched a fake app to target employees. These apps often ask for bank details and private data.
Still, the government has no official app for salary updates. Moreover, the official 8th Pay Commission website (8cpc.gov.in) is for feedback only. Thus, staff should avoid third-party tools.
What This Means for You
First, check your basic pay. Then, add 60% to calculate your new total. For a Level 1 employee with a basic pay of ₹18,000, the monthly DA will touch ₹10,800. Finally, expect two months of arrears (January and February) in your March salary.
What’s Next
The 8th Pay Commission questionnaire is live until March 16, 2026. After that, the board will review inputs from unions and ministries. Then, a final report is expected within 18 months. Eventually, the new pay scales will take effect, providing a much larger jump in disposable income.
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