7th Pay Commission 2026 central government employees are waiting with bated anticipation what news is to come on the DA hike. Expectedly, this rise of 2% will increase Dearness Allowance (DA) and Dearest Relief (DR) from 58% to 60% effective January 1, 2026. This would be the first revision of the DA since December 31, 2025 when the 7th Pay Commission closed.
The date of approval for this DA revision has been tentatively fixed as early as the first week of March 2026, following an approval from the Union Cabinet before Holi. Payment of arrears for January and February would be made together. More than 50 lakh central government employees and nearly 69 lakh pensioners are set to benefit from this DA hike with effect from January 2026.
About Dearness Allowance (DA)
Dearness Allowance or DA is an adjustment to the salary made by the central government for its employees for the rise in the price of goods due to inflation. It is calculated based on the All India Consumer Price Index for Industrial Workers and is normally held twice a year, i.e., in the months of January and July. Currently, the total DA stands at 58% (July 2015). It is the average of the index for the past 12 months, and based on this, it takes the ratio to the base year.
For pensioners, the same percentage applies to Dearness Relief (DR) on their basic pension.
Breaking News On 7th Pay Commission DA Hike 2026
With the Labour Bureau releasing the AICPI-IW data for December 2025, which reached 148.2 points, the DA brings about six points to work out to 60.34%. As per government practice, it will be rounded to 60% – meaning the hike stands at 2% over the current 58%.
This offer comes at a very opportune time when the work of the 8th Pay Commission has started (effective January 1, 2026), but the pay package and pensions are continuing under the 7th Pay Commission, pending the implementation of the recommendations.
How Much Will You Gain?
By this method, daily and that extra payment per month is R 18000 less for an employee who has a salary.
Basic pay of common mid-level employees falls at 50,000 rupes: In this case, an earnings increment of up to 2000 rupes. At the senior level, the basic pay becomes 1 luch: With an addition of an extra 2,000-rupee sum each month on fundamentals amounts.
Raise in pension is the same percentage. The arrears amount is due two months from the date of order being issued.
Key Benefits of D. A. Hike
This 2% increase is going to help by fighting against the rising costs of food, fuel, and daily needs. And it will be immediately received and deposited online. Side by side, the money gets directly paid into your account without any extra paperwork-automatically changing figures will be done at back end in banks and post offices. All this leads to high morale among employees and pensioners across the country and political parties too.
Comparison of Recent DA Hikes under 7th Pay Commission
| Effective Date | DA/DR Rate | Hike (%) | Monthly Gain on ₹50,000 Basic Pay |
|---|---|---|---|
| January 1, 2025 | 55% | +2% | ₹1,000 |
| July 1, 2025 | 58% | +3% | ₹1,500 |
| January 1, 2026 (Expected) | 60% | +2% | ₹1,000 |
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What Happens Next?
In the first or second week of March 2026, an official notification is expected. All records will be updated after notification, including within ministries, departments, and all banks. No separate application is required for employees. Pensioners will find the updated DR markup in their pension slips.
If one decides to elucidate with precise figures, they can take this formula of adding their current basic pay (or basic pension) with the 2% of its personalization to the corresponding DA sum.
This may also help to alleviate anxiety since 2026’s 7th Pay Commission DA rise should significantly benefit millions of families today. The final order can be found on the website of the Department of Expenditure sometime soon. Better news may follow with the 8th Pay Commission. Keep updating and get hold of extra income to plan your budget in better ways.