• Source:JND
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DA Hike Latest Update: The wait for Dearness Allowance (DA) hike is still not over for over a crore of central government employees and pensioners, even as a new financial year has begun. Usually, the DA hike is announced around Holi before the end of the financial year; however, this is an unusual delay, as a DA hike announcement has never been postponed this long since the implementation of the 7th Pay Commission in June 2016.

DA Hike Announces Twice A year

Dearness Allowance (DA) is a routine activity which is revised twice a year, typically effective from January 1 and July 1, to adjust for inflation. However, the announcement for the DA rate effective from January 1 is usually made in March or early April (often around Holi). For the rate effective from July 1, the announcement is usually made around Diwali in October or November.

Last financial year, the DA increase for January 2025 was announced on March 28, 2025, with the official order issued on April 2. For 2024, the official order was issued on April 3. 

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Meanwhile, during the COVID pandemic, the government kept the DA fixed at 17 per cent between October 14, 2019, and July 20, 2021, with the order issued on April 23, 2020.

What are the reasons behind the delay?

According to media reports, the government is postponing the DA hike due to financial pressures, possibly related to the Israel-Iran conflict. Central government employees are expected to receive a DA hike under the Seventh Pay Commission, even though the current pay commission expired on December 31. 

DA Hike Expectations

Considering the 12-month average data–January 2025 to December 2025– of the All India Consumer Price Index-Industrial Workers (AICPI-IW), the DA is expected to increase by 2 per cent. With this, the DA rate would go up to 60 per cent from the current 58 per cent. 

Also Read: Does India Have Buffers To Weather Headwinds From Middle East Conflict? What World Bank Said

Expert Insight

According to a report in the Economic Times, experts believe the delay is not a sign of a policy change. Adil Shetty, CEO of BankBazaar.com, stated that the delay does not reflect any change in government policy, as it might be due to administrative procedures and the approval process related to the 8th Pay Commission.


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