DA Likely to Rise To 60%: Will Government Announce Hike Before Holi 2026?

Lakhs of central government employees may soon see a salary boost, as the Dearness Allowance (DA) is expected to increase by 2% following the latest inflation data. The Labour Bureau has announced the December 2025 reading of the All India Consumer Price Index–Industrial Workers (AICPI-IW) at 148.2, which effectively seals a DA hike from 58% to 60%. 

With Holi falling on March 3, 2026, anticipation is building over whether the Centre will announce the hike ahead of the festival.

DA Hike Trend: Announcements Often Linked to Festivals

The central government revises DA twice every year: in January and July. However, the official announcements typically come later, often timed around major festivals such as Holi or Diwali.

For instance, in 2025, Holi was on March 14, but the DA hike was announced on March 28. However, the second DA hike in 2025 was announced on October 1, days ahead of Diwali on October 20.

Why Does DA Hike Matter So Much?

Dearness Allowance is a critical component of a government employee’s salary. While the basic pay remains fixed under a pay commission, DA is revised twice a year to offset inflation.

The 7th Pay Commission’s tenure ended on December 31, 2025, and the implementation of the 8th Pay Commission may take more than a year. Until then, employees’ basic salaries remain unchanged, making DA hikes especially important in protecting purchasing power.

What Happens Next?

With the numbers now effectively finalised, the only uncertainty is the timing of the announcement. If past trends are any indication, the Centre may choose to declare the hike around Holi, offering a festive boost to millions of employees and pensioners.

Read more: 8th Pay Commission Website Goes Live: Govt Opens Public Consultation for Pay, Pension and Allowances.

Conclusion

The expected rise in DA to 60% provides much-needed inflation relief to central government employees at a time when the transition to the 8th Pay Commission remains pending. While the increase may appear modest in percentage terms, it plays a vital role in preserving real income.

All eyes are now on the government’s formal announcement, and whether it arrives before Holi 2026.

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