NC-JCM Requests Cabinet Secretary to Expedite January 2026 Dearness Allowance Revision
Urgent Appeal for Approval
The National Council (Staff Side), Joint Consultative Machinery (NC-JCM), has formally requested the Cabinet Secretary to facilitate the swift approval of the proposed dearness allowance (DA) revision effective from January 2026. This demand comes as employee organizations emphasize the need for the government to announce the increase as soon as possible.
The anticipated DA hike is expected to rise from the current 58% to 60% for central government employees. The new DA rate will take effect from January 1, 2026, but there has been no official announcement from the government as of now.
Pattern of Delays
Typically, the government announces the DA adjustments for the January-July cycle by the end of March or around the time of Holi. However, discrepancies in this timeline have prompted employee unions to call for immediate action. The Confederation of Central Government Employees & Workers also reached out to the Finance Minister, Nirmala Sitharaman, urging for the quick release of the pending DA, effective from the start of January 2026.
Moreover, the Confederation organized an All-India demonstration on April 16 to highlight its demands. This collective action underscores the mounting pressure exerted on the government by various employee bodies regarding the DA announcement.
Contents of the NC-JCM Letter
In a letter sent to the Cabinet Secretary on April 13, the NC-JCM expressed concerns regarding the postponement of the DA instalment, which is usually declared in March for central government employees and pensioners. The letter states, “Unfortunately, this year so far, the government has not declared DA/DR due from January 1, 2026. This has created discontent and apprehensions among central government employees and pensioners.” The NC-JCM urged for prompt intervention to ensure that the DA/DR revision is declared without further delays.
Reasons for the Delay
The delay in the announcement of the DA hike is noteworthy as such increases are generally resolved in March or early April. This delay coincides with a transition between the 7th and 8th Pay Commissions. The 7th Pay Commission’s tenure concluded on December 31, 2025, and the 8th Pay Commission has become operational as of January 1, 2026. As the new commission has yet to provide its recommendations, salary and pension adjustments under the new framework may take additional time to finalize.
Expected Increase in Dearness Allowance
Analyses based on the All India Consumer Price Index for Industrial Workers (CPI-IW) predict that the DA may increase by 2 percentage points from the current level of 58% to 60%. The CPI-IW recorded 148.2 in December 2025, which aligns with the formula of the 7th Pay Commission to determine DA. Consequently, this translates to a calculated DA of approximately 60.34%. Following standard rounding practices, the official DA is expected to be finalized at 60%.
This adjustment will financially benefit over one crore central government employees and pensioners once enacted.
Historical Context of DA Announcements
Historically, updates to the DA have followed a consistent schedule. The following outlines recent DA revisions:
– January 1, 2026: Expected 2% increase to 60% (Pending announcement)
– July 1, 2025: 3% increase to 58% (Confirmed on October 6, 2025)
– January 1, 2025: 2% increase to 55% (Confirmed on April 2, 2025)
– July 1, 2024: 3% increase to 53% (Confirmed on October 21, 2024)
Understanding the calculation of DA under the 7th Pay Commission framework reveals that it is based on the average CPI-IW, ensuring that it reflects cost-of-living changes for central government employees.
