# Central employees may get 3-4% DA hike this festive season

2026-09-16T03:12:05+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

Central government employees and pensioners may receive a second dearness allowance (DA) hike this festive season, with a 3-4% increase expected based on recent inflation data. The All India Consumer Price Index for Industrial Workers (AICPI-IW) has risen steadily in 2026, reaching 153.2 in July. Past trends show the government cleared DA hikes during Diwali in both 2024 and 2025. DA is calculated using the 12-month average of AICPI-IW under the 7th Pay Commission formula. Current DA stands at 60% of basic salary, effective January 2026. Meanwhile, the All India Defence Employees' Federation has submitted suggestions to the 8th Pay Commission seeking a change in the calculation formula, arguing that the current index gives lower weight to food inflation while housing and digital services have greater weightage despite more stable prices. The 8th Pay Commission is yet to submit its recommendations.

## Indian Opinion Analysis

Both Livemint articles report straight facts about DA calculation and expectations for a festive-season hike, with no discernible slant toward or against the government. The first piece goes deeper into the AIDEF's formula critique, but frames it as a union submission to the 8th pay commission rather than as an indictment of current policy. The second piece focuses on market expectations from AICPI data and past Diwali announcements, again without editorialising. The balanced takeaway: coverage is uniform explanatory reporting. The real test is whether the government's October announcement matches the 3-4% rise the data suggests, and how the 8th pay commission addresses the AIDEF's index-reform demand.

## Coverage

- livemint.com <https://www.livemint.com/money/personal-finance/da-update-how-dearness-allowance-calculated-why-demand-change-formula-employee-groups-want-reflect-actual-cost-inflation-11789382398966.html>
- livemint.com <https://www.livemint.com/money/personal-finance/da-news-update-employees-expect-second-dearness-allowance-hike-festive-season-diwali-2026-inflation-employees-pensioners-11789472252161.html>

Tags: 7th Central Pay Commission, 8th Central Pay Commission, AICPI-IW, AIDEF, Central Government employees, dearness allowance
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