Government employees and retirees anticipate the hike in Dearness Allowance (DA) in the month of February 2026. The increase shall compensate for the increase in inflation and increase in the cost of living based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW). With the release of the data on AICPI for December 2025, an increase of 2% is predicted, bringing the DA up to 60% from the current 58%.
What is Dearness Allowance?
It is the component of the salary of the government employee revised twice annually in the months of January and July. The very peculiar feature of the same is that it tends to protect the purchasing power within the bracket of inflation. With effect from 1st January this year, the adjustment will be made and become effective from February 2026-The second stage of the process. It will cover a total of 1 crore and more staff in both the category of employees and pensioners.
Reasons Behind the Hike
AICPI-IW average of 148.2 of November and December 2025 had driven the hike to 148.2 for December. DA arrived at 60.33% after rounding off to 60. Such increases were dubbed as the lowest in recent years for January hikes, being typical of mild inflation rate patterns.
Expected Percentage Increase
Outlook hinged on expectations of 2% D. A. increments at par with trend experienced in low inflation years as in 2007 and 2018. The curtain raiser under the 8th Pay Commission shows restraint. However, the facts are still waiting to be confirmed.
Impact on Monthly Salary
In the case of a Level-1 employee with a monthly basic pay of Rs. 18,000, a 2% increase will yield an additional monthly amount of Rs. 360. Higher levels will magnify the benefits; for example, an increase from Rs. 90,000 basic pay, which is Rs. 1,800. Conversely, the increased percentage leads to more House Rent Allowance and other benefits.
Arrears and Payment Details
The said hike would be effective from January 1, 2026 and the arrears for January and February will be made payable with the salary for March. Pensioners will also get Dearness Relief (DR) along similar lines. The total arrears will vary between a minimum of Rs. 720 and a maximum of Rs. 3,600.
Who Will Benefit?
All central government employees under the 7th Pay Commission are entitled to all respective benefits, making the provision also for pensioners and family pensioners. autonomous bodies may also have theirs. This is usually applied uniformly to defense, railways, and postal employees.
How to Calculate DA
The DA rate is calculated by removing 261.42 from the average of 12-month AICPI and dividing 261.42, multiplied by 100. So the standard assumes an average of 145.54 in AICPI for 2026 to yield 60. Online calculators under DA can be used for personal use.
Date of Announcement:
Usually the government announces the hike for January in the month of March before Holi. It is yet to come by official order as it is already mid-February 2026, but union sources expect it soon. One can check DoE under the Ministry’s website for updates.
| DA Hike Details February 2026 | Current DA | Expected DA | Hike % | Effective Date | Arrears Months |
|---|---|---|---|---|---|
| Central Employees | 58% | 60% | 2% | Jan 1, 2026 | Jan-Feb |
| Level-1 (Basic Rs.18,000) | Rs.10,440 | Rs.10,800 | Rs.360 | Jan 1, 2026 | Rs.720 |
| Level-13 (Basic Rs.1,23,100) | Rs.71,498 | Rs.73,860 | Rs.2,462 | Jan 1, 2026 | Rs.4,924 |
| Pensioners (Similar Scale) | Varies | +2% | Varies | Jan 1, 2026 | Jan-Feb |
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