8th Pay Commission Latest News: Centre To Announce DA Hike in March? 2% to 5% Rise in Dearness Allowance Likely
Central government employees are anticipating a Dearness Allowance (DA) hike in early March 2026, likely before Holi. While some projections suggest a five per cent increase (making DA reach 63 per cent), latest AICPI-IW data indicates a two per cent hike to 60 per cent. The revision, retroactive to January 1, will likely be paid with April salaries.
New Delhi, February 19: While the 8th Central Pay Commission (CPC) has technically come into effect as of January 1, 2026, more than one crore central government employees and pensioners will continue to be governed by the 7th CPC framework for the foreseeable future. Although the new commission has been constituted, the formal transition to a revised pay structure is expected to take significant time as the panel deliberates on its final recommendations.
The Union Government notified the resolution for the 8th CPC in November 2025, setting an 18-month deadline for the commission to submit its report. This timeline suggests that actual salary and pension revisions may not be implemented until mid-2027, though they will likely be applied retrospectively from January 2026. 8th Pay Commission: Will Centre Announce DA Hike Before Holi for Government Employees?
Expected Dearness Allowance Hike and Timeline
While the new pay structure is pending, employees can expect near-term financial relief through the biannual Dearness Allowance (DA) revision. Based on the latest All India Consumer Price Index for Industrial Workers (AICPI-IW) data, which remained steady at 148.2 for December, a five per cent hike is anticipated, reports Money Control. A five per cent hike will take the dearness allowance to 63 per cent from the current 58 per cent.
The Modi government is likely to make the DA hike announcement in March. Manjeet Singh Patel, President of All India NPS Employees Federation, said the Centre may announce the DA hike early in March to coincide with the Holi festival. If a five per cent FA hike is announced, then employees are likely to receive hiked DA with their April salary, which will also cover arrears from January 2026.
Current DA Rate: 58 per cent (Effective since July 2025).
Projected DA Rate: Likely to reach 65 per cent if a 5 per cent hike is approved and 60 per cent if a 2 per cent DA hike is announced.
Announcement Timeline: The Union Cabinet is expected to announce the hike in early March 2026, coinciding with the Holi festival.
The 8th CPC Timeline and Fitment Factor
The 8th Pay Commission is currently in its consultative phase. A dedicated portal (8cpc.gov.in) has been launched to solicit feedback from stakeholders, with a submission deadline of March 16. A major point of discussion is the "fitment factor", which determines the multiplier used to arrive at the new basic pay. Employee unions are reportedly pushing for a fitment factor between 2.86 and 3.25. If a factor of 3.25 is accepted, the minimum basic salary could potentially rise from the current INR 18,000 to approximately INR 58,500, though these figures remain speculative until the commission's report is finalised. 8th Pay Commission Scam Alert: MHA Warns Government Employees Against Fake ‘Salary Calculator’ WhatsApp Links and APK Files.
Arrears and Payment Schedule
Once the government officially notifies the DA hike in March, the revised rates are expected to be reflected in the April 2026 payroll. This payment will include arrears backdated to January 1, 2026. Regarding the 8th CPC itself, once approved in the future, employees will receive a lump-sum payout of arrears covering the entire gap between January 2026 and the date of notification.
(The above story first appeared on LatestLY on Feb 19, 2026 11:41 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).